Norway to cancel $20 million Pakistani debt

Norway has agreed to cancel 20 million U.S. dollars of a total of 46 million U.S. dollars debt owed by Pakistan to Norway, on condition that the money be used for reconstruction and development, said reports from Oslo on Saturday.

"We are pleased that these funds now may be used for the reconstruction and rehabilitation in the area of Pakistan hit by the earthquake in 2005," Norwegian Broadcasting (NRK) reported, quoting the Norwegian minister for international development, Erik Solheim.

The funds will be channeled through the Pakistan Earthquake Fund (PEF), which is managed by the Asian Development Bank (ADB), reported NRK.

The agreement between Norway and Pakistan gives priority to social infrastructure and health, as well as education services in the North West Frontier Province.

Particular emphasis is to be given to the construction and rehabilitation of primary school buildings, according to NRK.

Source: Xinhua