US, Pakistan sign aid agreements worth $899m Posted by wasif shah , Friday, October 2, 2009 at 12:24 AM, in Labels: BUSINESS

ISLAMABAD: The United States and Pakistan on Thursday signed agreements worth $899 million in the areas of health, education, governance, and reconstruction.“The agreements bring the total obligations to Pakistan through USAID this year to $920 million,” a statement by the US embassy said.It said a substantial amount of the funds would be provided to the government and local non-governmental institutions to implement programmes in the sectors. Direct budget support worth $174 million for the Benazir Income Support Programme, the income support programme for internally displaced persons and assistance to technical and vocational education activities under the Higher Education Commission are included in the agreements.“These agreements demonstrate the US commitment to help Pakistan enhance the lives of its citizens through improved delivery of services,” Deputy Chief of Mission Gerald Feierstein said.Under the agreements, the US would increase resources to sectors that foster economic growth, including the energy sector. These agreements are in addition to the Enhanced Partnership with Pakistan Act of 2009, often referred to as the Kerry-Lugar bill, which is expected to further increase development funding for Pakistan to $1.5 billion per year for five years.Congress gave the final go-ahead to the five-year package on Wednesday. The aid would help build schools, roads and democratic institutions in the frontline nation in the US-led campaign against extremism.The bill also stipulates that US military aid would cease if Pakistan does not help fight “terrorists”, including Taliban and Al Qaeda.Senator John Kerry, the co-author of the bill, said the aid plan marked a turning point by responding to the needs of Pakistan’s people rather than just the government.