Islamabad, Jan. 27 (Reuters): The US has approved $395 million in aid to Pakistan, almost half of which will be used to write off debt to Washington, a government minister said today.

Finance minister Shaukat Aziz said under the agreement, Pakistan would repay $200 million to the US, which would save it about $400 million-$500 million in interest payments.

CNN staff: Two CNN employees were killed in an ambush in Iraq as they were returning to Baghdad in a two-car convoy.