WASHINGTON, June 24: Almost a billion dollars will be available for debt retirement from the $3 billion economic package the United States pledged to Pakistan on Tuesday, senior Pakistani officials told a briefing in Washington.

From this, $1.5 billion will be available for meeting Pakistan’s defence requirements, including buying spares and the upgradation of the existing fleet of the F-16s.

“We will be receiving $600 million a year, evenly divided between defence and economic needs,” said Finance Minister Shaukat Aziz.

“Almost a billion (dollars) will be available for debt retirement as well,” he added.

The briefing followed a meeting between President George W. Bush and President Pervez Musharraf at Camp David.

The finance minister said that on Wednesday, Pakistan will also sign the trade and investment framework agreement with the United States.

“This will be the beginning of a process which, we hope, will ultimately lead to a free trade agreement,” he said.

The finance minister said that besides the $3 billion package, Pakistan is also receiving $120 million assistance for education and economic aid amounting to $389 million already in the pipeline.

“This five-year package, from our perspective, sends a very positive signal to investors that the US is involved in Pakistan in a mid-to-long term basis. It will augur well for our economy and for investor confidence,” said the finance minister.