The report said that this and other options are being explored by the US to resolve the complicated F-16 issue before President Clinton visits Pakistan later this year.

The newspaper revealed, Congressional sources said that US ambassador Bill Richardson had carried these proposals to Islamabad and one such option was to provide Pakistan relief in its foreign debt equal to the amount the US owes to Pakistan.

It further said, Richardson had discussed these options with the Pakistani leadership during his two-day stay in Islamabad, last week. The existence of these options was given further credence when Pakistan Foreign Minister Gohar Ayub Khan spoke of some``positive developments'' during Richardson's visit and expressed hope that the F-16 issue would be resolved.

In an interview to American radio company, Voice of America, Ayub said that Pakistan and the United States were working towards removing irritants in their relationship. ``When President Clinton comes here, we will not remember or discuss the irritants that have existed between the two countries but start on a positive note our relationship,'' said Ayub in Islamabad, in the interview.

The comment was interpreted by experts as a clear indication that both sides were trying to explore options that could resolve the matter. According to Riaz Khokhar, Pakistan ambassador to the US, ``We are playing a friendly match with the US and not an India-Pakistan one day final.''

The refund issue of the F-16s has been hanging fire for the last two years when Opposition leader Benazir Bhutto was the Prime Minister. Her successor Nawaz Sharif has also taken up the isse in a big way with the US government.