India and Pakistan have welcomed the decision by President Clinton to lift some of the sanctions imposed after their nuclear tests in May.

Pakistan's foreign minister, Sartaj Aziz, said the move should lead to a resumption of loans from the International Monetary Fund and other organisations.

An IMF team is due in Pakistan on Monday for talks on a bail-out package for the economy.

An American official said those sanctions being lifted were a recognition of the fact that India and Pakistan had declared a moratorium on further nuclear tests.