March 22, 2004-Pakistan hasn't yet delivered al-Qaeda No 2 Ayman al-Zawahiri to the United States in exchange for its recognition as a major ally, but the diplomatic bonanza will yield rich pickings, including arms and ammunition, in the coming days.

Reports from Pakistan say accounts of the Pakistani military having cornered a "high-value target" now appear to be misplaced, but Islamabad's ability to milk Washington of military supplies and money with promises on various issues remains undiminished.

The chatter of "high-value target" also succeeded in hoodwinking Colin Powell from raising Pakistan's nuclear shenanigans, some reports suggested.

Following its designation as a "major non-Nato ally" earlier this week, Pakistan is now eligible for purchase of excess defense articles and equipment the US may leave behind once it leaves the region.

According to Prof Stephen Cohen of the Brookings Institution, the MNNA designation also allows a country to purchase depleted uranium and US reserve stockpiles.

"This could mean an expanded flow of US military hardware to Pakistan, putting us (again) on both sides of an arms race--this time a nuclear arms race as well as a conventional one," Cohen told TNN amid talk in the analysts community that Washington had just thrown some fuel into the South Asian fire which had shown signs of dying out.

The US will also write-off USD 460 million debt of Pakistan under the previously agreed American financial assistance package. An agreement to this effect would be formally signed next month between the two countries.

This was decided during a meeting between US Under Secretary of State for Economic Affairs Alan Larson and Pakistani Finance Minister Shaukat Aziz yesterday.

Larson also told Aziz that the US Exim Bank had upgraded Pakistan's rating which would mean that the bank will offer expanded financial facility to Pakistan's public-sector entities. He assured of continued US financial and technical assistance in the implementation of reform programme in Pakistan.

The United States government is reportedly paying Pakistan 100 million dollars a month for logistics support in the global war against terrorism. The "logistics support payments" increased by 83.3 per cent during July-December 2003 to total 581 million dollars, or about $97 million dollars a month.

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