Islamabad: The United States has ruled out the possibility of signing a Free Trade Agreement (FTA) with Pakistan, dealing a blow to Islamabad's hopes of clinching the deal as a reward for its co-operation in the war on terrorism.

Visiting US assistant trade representative Ashley Wills told reporters in Islamabad that there was little chance of US signing such a treaty with Pakistan.

"I want to be very honest with you, I do not see this (FTA) as a proximate possibility," and it was not going to happen in the next few years, Wills was quoted as saying by the media.

Pakistan has already cashed in on its exports to US by pushing its textile exports from about $ 426 million in 1999 to $ 2.31 billion in 2002 by obtaining different trade concessions.

"We do not need to have a FTA to improve and liberalise trade between the United States and Pakistan. We can instead work on Trade and Investment Framework Agreement (TIFA) to have more liberalised trade between the two countries," Wills said, adding that US wants Pakistan as an active trading partner.

PTI