ISLAMABAD, June 15: The United States and Pakistan signed an agreement on Friday for $200 million (about Rs12 billion) in direct US economic support for Pakistan’s Public Sector Development Programme (PSDP) for financial year 2007-08.

The agreement was signed by the US Charge d’Affaires, Peter W. Bodde, the new USAID Mission Director, Anne Aarnes, Minister of State for Economic Affairs Hina Rabbani Khar and Secretary of Economic Affairs Division M. Akram Malik.

“The United States government is proud to continue working with the government of Pakistan in improving the living standard of its citizens,” Mr Bodde said in his statement.

“Providing improved health services, creating economic and educational opportunities, supporting better governance and ensuring basic human security for all Pakistanis is fundamental in building a solid, sustainable foundation for Pakistan’s continued development,” he added.

The agreement is the third of five annual $200 million instalments of US economic assistance over five years (2005-09) to support Pakistan’s investment in human capital.

The FY2007-8 economic support funds will help the government of Pakistan to meet the needs of its people by increasing its investment in education, healthcare, clean water and earthquake reconstruction.