ISLAMABAD, May 7: Pakistan is seeking a $1 billion aid package from the United States, including $400 million budgetary support, for health, education and poverty alleviation in 2004.

Informed sources told Dawn on Wednesday that the government also expected to get $200 million under the USAID programme besides $150 million as cash grant.

In addition, there will be separate financial support likely to be offered by the Bush administration as part of the military assistance programme for limited use of military bases in Pakistan. This assistance will cover funding to the interior ministry to help control narcotics and terrorist activities.

Sources said the government was maintaining that since the World Trade Organization’s new regime would be enforced in 2005 aimed at seeking elimination of subsidies and tariffs, the government wanted a one-time better market access from the United States in 2004. Initially, Pakistan is being assured to have $250 million worth of new market access.

Pakistan was offered roughly about $100 million market access in 2001 which was termed inadequate by former commerce minister Razak Dawood. On Tuesday, Finance Minister Shaukat Aziz met US Ambassador to Pakistan Nancy Powell and discussed with her improving bilateral relations between the two countries.

Talking to Dawn, Mr Aziz said Pakistan hoped to receive sizable financial assistance from the United States next year. He said the Bush administration was expected to write off the remaining $2 billion debt.

He said the government required resources for development and poverty alleviation, especially during 2003-04. “And we have taken up this issue with the US authorities, including Ms Powell, and their response is encouraging,” he said.

“We have asked for more market access and US private investment in Pakistan,” he said.