President Clinton has temporarily waived some of the sanctions imposed on India and Pakistan after their nuclear missile tests in May.

The announcement came ahead of a meeting between President Clinton and the Pakistani Prime Minister, Nawaz Sharif.

The White House said the move would enable United States banks and investment agencies to provide credit and loans to both countries.

Correspondents say the move also paves the way for international financial agencies to support an assistance programme being negotiated between Pakistan and the International Monetary Fund.

Military officers from both India and Pakistan are also to be allowed to train in the United States.