Islamabad: The US Congress is considering a package of economic measures for Pakistan during the 2004 Budget, said Nancy Powell, US Ambassador to Pakistan.

"There were several ways to assist Pakistan. We have to work very closely to finalise the proposals for the 2004 Budget (starting October 1, 2003)," said the Ambassador, confirming that a package was under consideration.

Official sources in the Ministry of Finance had earlier said that the government had made an official request to Washington to write off bilateral debt. Such proposals, they said, were discussed with Richard Armitage, US Deputy Secretary of State, and would be finalised by the time President Pervez Musharraf visits Washington in June. The US government had already provided about $ 200 million to Pakistan to pay down $ 1 billion bilateral debt.

A new Bill in the US Senate had proposed to extend President's waiver authority with regard to Pakistan for two years. According to the proposed Legislation, provisions had been made to authorise US President George W Bush to waive sanctions on Pakistan till 2005. The Bill, if approved, would authorise appropriations for the fiscal years 2004 and 2005. According to diplomatic sources, Pakistan's continued co-operation in the US-led terror war, and in security matters, would be a key factor.

ANI