Richard Lister: Sanctions thought to be a clumsy punishment

A United States government official said the move was a result of progress made by the two countries in curbing their nuclear weapons programmes by announcing a moratorium on further testing.

The official also said there was concern over the detrimental effect that the sanctions were having, especially on Pakistan's economy.

Richard Lister: Both India and Pakistan can breath a little easier

The sanctions, cutting off all but humanitarian aid, were imposed on India and Pakistan last spring after they carried out nuclear tests.

Foreign funds have been blocked, including a $1.56bn International Monetary Fund credit to Pakistan agreed a year ago.

The Pakistani government is looking for new IMF loans to help it close a $5bn balance of payments deficit.

Effect of easing sanctions
• Access to US credit and development agencies.

• US to broker a deal between Pakistan and the IMF.

• Some military retraining intended to ease tensions.

Still in force
• No weapons sales.

• Ban on dual use equipment such as super computer technology.

Congress gave the President authority to lift some of the measures last month.

The BBC's State Department Correspondent, Richard Lister, says sanctions will not be removed altogether until both India and Pakistan sign up for international arms control regimes such as the Comprehensive Test Ban Treaty.

President Clinton is expected to make a formal announcement of the sanctions reductions within the next few days.

International outrage

The two countries provoked world condemnation in May of this year by carrying out nuclear tests, which triggered economic sanctions against them by the US, Japan and other states.

Indian Prime Minister Vajpayee has agreed to sign the test ban treaty

India was the first to carry out the tests in the northern state of Rajasthan.

Pakistan, despite being urged by the international community not to retaliate, conducted five nuclear tests of its own in south western Baluchistan shortly after.