WASHINGTON, 26 March 2004 — The United States on Wednesday relaxed its restrictions on exports to Pakistan, saying the action would ease democratic transition in Pakistan and contribute to the war on terrorism.
The restrictions target countries where a democratically elected government has been overturned by a coup.
The lifting of the restrictions on Pakistan “would facilitate the transition to democratic rule in Pakistan” and “is important to the United States efforts to respond to, deter or prevent acts of international terrorism,” President George W. Bush said in a letter to Secretary of State Colin Powell.
“Accordingly, I hereby waive, with respect to Pakistan, any such provision,” said the letter. “You are authorized and directed to transmit this determination to the Congress.”
Powell announced during a visit to Islamabad last week that Washington intended to designate Pakistan a major, non-NATO ally.
That official designation - already accorded to Japan, Thailand, Kuwait, Egypt, Jordan and Israel among others — will allow the lifting of restrictions on weapons exports.
Pakistan welcomed the US decision to waive economic and military sanctions. “We hope this is a precursor to the termination of this US law’s application to Pakistan,” Foreign Ministry spokesman Masood Khan told Deutsche Presse Agentur in Islamabad.
“This is a good decision and we welcome it,” Khan said. He said the sanctions affected military financing and training in addition to economic activities under the US Trade and Development Agency, Overseas Private Investment Corporation (OPIC) and Economic Support Fund (ESF). “The latest decision reflects increasing cooperation between the two countries in many areas,” Khan said.
Meanwhile, share prices rose 1.3 percent yesterday to close at an all-time high as investors bought into the market heavily after the United States relaxed restrictions on exports, dealers said.
The benchmark Karachi Stock Exchange Index of 100 shares gained 66.61 points to close at a record high of 5,100. Turnover was 763 million shares worth 31.82 billion rupees ($553.4 million), while advancers outpaced decliners 237 to 146 with 61 stocks unchanged.
“Investors have welcomed the lifting of the restrictions by the US on its exports to Pakistan as it is likely to pave the way for investment as well as being a generally good omen for the economy,” said Mohammed Sohail, chief analyst of InvestCap Securities.
