The United States and Pakistan will sign an agreement today to reschedule $379 million in bilateral debt.
A spokesman for the US Embassy in Islamabad said the deal is part of an agreement Pakistan had signed with the Paris Club of sovereign creditors that allows it to reschedule up to $2.2 billion in loans.
In May, Germany agreed to reschedule 290 million German marks in debt owed by Pakistan.
The developments come as Washington said it was also lifting sanctions against Pakistan and India imposed over the two countries' nuclear programmes.
The move includes the resumption of military and economic help to Islamabad as it assists Washington in its hunt for Osama bin Laden, the prime suspect behind the attacks in the United States.
Pakistan's help is considered key because the country borders Afghanistan and has collected extensive data on the Taliban rulers.
But the Pakistani government's support for Washington has stirred intense opposition at home from anti-US Muslim militants.
AP