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EU sanctions tempered by Pakistan's fragile economy

European Union foreign ministers yesterday condemned the Indian and Pakistani nuclear tests and slapped a limited number of punitive measures on Pakistan.

Similar restrictions were imposed on India last month. The moves on Pakistan are broadly parallel to actions against India, EU officials said.

EU ministers said as in the case of India, they would review the advisability of allowing the World Bank and International Monetary Fund to give loans to Pakistan.

But they stressed that in Pakistan's case such a move would be made in the light of the economic and financial circumstances in the country.

"The message is clear," said an EU diplomat. "A delay in aid will not hurt India, but it could cripple the Pakistani economy. We have to keep this in mind."

The ministers suggested that Pakistan -- like India -- could lose access to the EU's generalised system of tariff concessions.

They also said they were withdrawing earlier suggestions for an acceleration of moves to sign a new EU-Pakistan co-operation treaty.

The 15 EU nations warned that the nuclear tests had created further instability in the South Asian region at a time when India and Pakistan remain divided by a number of complex and long-standing issues.

The EU is also concerned about the risk of adverse economic consequences, particularly for the poor, the statement said.

Ministers urged both India and Pakistan to sign the Nuclear Non-proliferation Treaty and the Comprehensive Test Ban Treaty.

UNI

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