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Tuesday, December 29, 1998 Published at 14:29 GMT


World: South Asia

US pays Pakistan unpaid millions


Pakistan says it's now received three-hundred-and-twenty-four-million dollars from the United States in settlement of a long-running dispute over the purchase of twenty-eight F-16 fighter planes.

Pakistan paid for the planes eight years ago but delivery of the consignment was stopped in protest against Islamabad's nuclear programme.

The transfer of the funds follows agreement between the two sides earlier this month.

The BBC Islamabad correspondent says receipt of the money has given a considerable boost to Pakistan's dwindlingforeign exchange reserves which appeared to have left the country close to default in recent months.

From the newsroom of the BBC World Service



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