Norway said on Friday it had agreed to cancel 20 million dollars of debt owed by Pakistan on the condition that the money is used for reconstruction efforts following a 2005 earthquake that killed some 74,000 people.
"We are pleased that this money can be used to help rebuild Pakistan after the 2005 earthquake," aid minister Erik Solheim said in a statement.
The funds are to be used to help rebuild social infrastructure, such as schools and health care centres, by the end of 2008. The Norwegian debt relief represents almost half of Pakistan's 46 million dollar debt to the Scandinavian country.