The US President Mr George W Bush has waived the last sanctions against Pakistan, clearing the way for a fresh infusion of financial aid to the key ally in the US-led military campaign in Afghanistan.
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US President George Bush
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Last month Mr Bush dropped sanctions that were imposed on Pakistan and India when they tested nuclear weapons in 1998. Those sanctions barred economic and military assistance.
Mr Bush signed legislation that allows him to waive the last remaining sanctions through September 2003. The Clinton administration imposed the punishment after General Pervez Musharraf took control of Pakistan's government in a coup.
"What this does is give the president the flexibility to authorise additional aid to Pakistan," White House spokesman Mr Sean McCormack said.
Anti-American and anti-government sentiment has swept across Pakistan since October 7th, when the US began air strikes on Afghanistan. Protests in Pakistan have been vehement and sometimes violent.
The administration plans to announce as early as this week new aid that could reach $500 million. Mr Bush has already committed $100 million in economic aid.
The United States and Pakistan also recently rescheduled $379 million of Pakistan's debt of about $3 billion to the US.
AP