THE United States has agreed to sell F16 fighter jets to Pakistan in a major policy shift to reward an ally in the war on terrorism.

The decision by President Bush to end an embargo on the sale of United States military technology to Pakistan was welcomed by President Musharraf of Pakistan, as a sign of America’s recognition of his role in disrupting terror networks in South-East Asia.

The move reverses a longstanding US embargo on the sale of military hardware to Pakistan.

“The supply of the sophisticated fighter planes will help Pakistan improve its defence capability,” Sheikh Rashid Ahmed, Pakistan’s Information Minister, said.

But the sale of as many as 24 jets was condemned by India, Pakistan’s nuclear-armed rival, saying it could lead to an escalation of tension between the two countries at a time when peace talks were at a delicate stage.

Mr Bush telephoned Manmohan Singh, the Indian Prime Minister, to inform him of America’s decision. A spokesman said that Mr Singh expressed India’s disappointment at the decision, which it believed could have negative consequences for India’s security.Pakistan has been campaigning for several years to buy the fighter jets which it says are needed to modernise the aging Pakistani airforce.

Defence analysts in Islamabad said that the decision by the United States to sell F16s could improve the public perception of the Bush Administration in Pakistan, which has fuelled opposition against General Musharraf. The United States blocked the sale of F16s to Pakistan in 1990 as a sanction against its nuclear weapons programme. The decision to lift the embargo comes despite concerns over Pakistan’s nuclear aspirations and growing evidence of Islamabad’s transfer of nuclear technology to Iran.

In its latest attempt to appease the international community, Pakistan agreed yesterday to hand over nuclear centrifuge components to the International Atomic Energy Agency (IAEA), which could enable the United Nations watchdog to determine if Iran has been building an atomic bomb.

General Musharraf said that his Government was considering sending the parts to Vienna for inspection to allay suspicion that Pakistan has transferred nuclear technology to Iran.

“To end the issue once and for all we want to send a nuclear centrifuge to Vienna and the matter is under consideration,” the President said.

During an investigation into Iran’s nuclear programme in 2003 the IAEA found traces of uranium that had been enriched to various levels, some close to what could be used in nuclear weapons.

Pakistan was a longtime customer of F16 jets until Washington halted its sales in 1990 for developing nuclear weapon. The US put further sanctions on Pakistan and India after the two nations tested nuclear bombs in May 1998.

Pakistan is almost wholly dependent on the US for its fighter jets. The US sanctions caused a depletion of its air force squadrons.

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