President Clinton has suspended some of the sanctions imposed on India and Pakistan after their nuclear missile tests in May, opening the way for them to receive loans and investments from American financial institutions, and some military training, The details of the anticipated announcement were released ahead of a meeting between President Clinton and the Pakistani Prime Minister, Nawaz Sharif, later today.

On arriving in Washington, Mr Sharif welcomed the move, saying he hoped it would lead to the complete lifting of sanctions.

Correspondents say Mr Clinton wants Pakistan to adhere to international committments on nuclear non-proliferation.

Pakistan is reported to be on the brink of bankruptcy and Mr Sharif will also be meeting officials from the World Bank and the International Monetary Fund.