ISLAMABAD, Aug 25: The government has decided to spend half of the five-year $3 billion United States assistance package promised by President George Bush earlier this year at Camp David for improving health, education, poverty alleviation, water and sanitation programmes and other social sectors in all the four provinces.

“We have identified these six sectors for utilizing the economic portion of the US assistance,” said Finance Minister Shaukat Aziz.

Talking to Dawn here on Monday, he said while 50 per cent of the US assistance would be used for purchasing military equipment, the remaining amount would be spent for effectively uplifting social sectors.

Mr Aziz said Pakistan would start receiving US funding from 2005 after the approval of the Congress.

Responding to a question, he said negotiations with the US government were going on currently as to how best the economic package could be utilized. “And we have conveyed to the US authorities that we need assistance for six sectors that I have just mentioned to you.”

The finance minister pointed out that the government was already spending “a huge amount” on social sectors.

The Bush administration and other donor agencies, he added, had been informed about the increased financial allocations made for social sectors during the current financial year.