The socio-economic development funding for Pakistan would be geared toward  addressing the economic crisis including agriculture and food security, assist the displaced population, strengthen national and provincial governance, expand the rule of law and improve access to quality of education.

Another $700 million has been allocated to improve Pakistan’s security forces capability under Pakistan Counterinsurgency Capability Fund, available on September 30^th, 2009.

Islamabad has welcomed the expression of support by both the Congress and the White House at the critical time for the country as it also looks to rehabilitate more than three million internally displaced persons.

Pakistan’s envoy in Washington Husain Haqqani saw support for his key South Asian country as encouraging at the juncture when the entire Pakistani nation is determined to get rid of violent extremism and move forward as a moderate, progressive country.

“The US-Pakistan partnership is crucial for stability in South Asia and US assistance helps bolster the confidence and sense of security of Pakistanis,” he added.

Islamabad says it needs more than two billion for relief and rehabilitation of its internally displaced persons, who left their homes following the launch of military operation to clear the scenic Swat valley of Taliban militants.

The U.S. has by far been the biggest contributor to the massive humanitarian aid effort, having already given $ 165 million. The additional $ 225 million will bring its total humanitarian aid to around $ 400 million.

The total inflow of money from the U.S. into Pakistan this financial year 2009 would be $ 3.27 billion including $ 957 million in appropriations and another $ 912 million on account of coalition support funds.

Pakistan estimates a loss of $ 35 billion to terrorism and insurgency on its Afghan border over the last several years, where it has been fight militants who crossed over from Afghanistan when the U.S. dislodged the Taliban from Kabul in early 2002.

In the post-September 2001 relationship,  Washington has been trying to help Pakistan with support for loans from World Bank and International Monetary Fund as well as its own direct economic aid to stabilize the country’s economy.

The emphasis on economic support has increased only lately as the democratic Pakistani leaders and diplomats have drawn the Obama Administration’s attention to the need to address underlying causes of militancy.

Islamabad says its anti-terror allies, including the United States and the European countries must lend sustained support to it to help root out violent extremism from its troubled northwest and federally administered tribal areas along the Afghan border.