ISLAMABAD, June 10: The United States will provide Pakistan an additional $200 million to support the social and economic investments envisaged in the budget.

An agreement to this effect was signed by US Ambassador Ryan C. Crocker, US Agency for International Development (USAID) Director Lisa Chiles, Minister of State for Economic Affairs Hina Rabbani Khar and Economic Affairs Secretary Khalid Saeed here on Friday.

US officials said the additional funding was the first instalment of budget support from the $3 billion five-year assistance package that President George Bush pledged to Pakistan during his June 2003 meeting with President Gen Pervez Musharraf.

It brings US grant, budget support and reimbursements to Pakistan during the current fiscal year to more than $1 billion, according to the officials.

The funds would expand health care coverage, increase access to quality education, improve water supply and sanitation and expand farm-to-market roads, they said.

Ambassador Crocker said: “Pakistan is amongst only a handful of countries in the world selected to receive this type of flexible budget.”

“These funds respond to priorities identified by the Pakistani government in response to the expressed needs of the Pakistani people,” he said.

The funding is in addition to the $147.6 million in development assistance provided by USAID for similar purpose last month. It brings total USAID support to the country during the current fiscal year to $347.6 million.