In an apparent bid to win Pakistan's support on military action against Iraq, US President George W Bush has lifted sanctions on Islamabad imposed after President Pervez Musharraf took over power in a bloodless coup in 1999.

Bush issued a decree on Friday lifting the final set of US punintive measures against Pakistan, paving the way for export financing and other aid worth millions of dollars.

The decree titled "Waiver of Coup-Related Sanctions for Pakistan," says that Bush is issuing the waiver certifying that it "would facilitate the transition to democratic rule in Pakistan" and that the waiver is "important to US efforts to respond to, deter, or prevent acts of international terrorism."

Faced with strong domestic opposition, Pakistan, a non-permanent member of the UN Security Council, has been so far non-committal to US efforts for a resolution authorising war to disarm Iraq.

White House announced that Pakistan's Prime Minister Zafarullah Jamali would meet Bush on March 28 to discuss a host of international and bilateral issues, including the ongoing war against international terrorism.