Saturday, November 12, 2005

Pakistan may delay $1b Swedish defence deal

ISLAMABAD, Nov 11 : After the postponement of F-16s deal, Pakistan is also likely to delay $1 billion defence accord with Sweden.

Pakistan has been engaged in consultations with a Swedish firm for delivery of Airborne Early Warning (AEW) surveillance system and both the sides have reached a provisional agreement in this regard, media report said.

Sources, however, said keeping in view the colossal devastation caused by the earthquake that hit the country on October 8, the government was likely to put off the deal with the Swedish company, Saab Ericsson.

They said that any such postponement would not be for a long period and talks would be resumed once the country was out of critical situation, which it was confronting due to enormous losses caused by the unprecedented quake in Pakistan.

Earlier, there were reports that Pakistan was about to adopt an AEW system after signing a provisional contract with the Swedish firm, which envisages replacing of F-27 Fokker planes from the Pakistan Air Force.

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