ISLAMABAD: Chinese Ambassador to Pakistan Sun Weidong and Mohammad Saleem Sethi, Secretary of Economic Affairs Division on Wednesday signed an agreement on behalf of their respective governments for the award of a special grant.

According to the agreement, a grant of $10 million in cash will be provided to support the government of Pakistan in rehabilitation of residents in Federally Administered Tribal Areas (Fata) and to promote subsequent social development in the region.

The signing of agreement comes as follow up to President Xi Jinping’s visit to Pakistan earlier this year.

Read: Over 6,000 displaced families return to Bara

It is pertinent to mention that the government of China had earlier approved a grant of $129 million for development and rehabilitation of Fata region.

In this regard, various projects and programs will be implemented with assistance of the Chinese government.

Moreover, the government of China has also shown willingness to provide more assistance for up-gradation and betterment of Fata region.

The Chinese ambassador also conveyed best wishes and greetings to the people of Pakistan for the month of Ramazan and Eid on behalf of the Chinese government. .

Finance Minister Ishaq Dar welcomed the signing of the agreement which he said would help in addressing the issue of Temporarily Displaced People (TDP) in Fata.

"The signing of this agreement is another example of the close economic relation between China and Pakistan," said Dar.

Dar added that it was one of the top priorities for the government of Pakistan to ensure timely and effective rehabilitation of TDPs and to ensure that social opportunities exist at the time of their return. He expressed hope that the remaining funds will be utilised for TDPs in an effective manner.

Fata has been severely affected by unrest and military operations over the past decade. Earlier this year, the number of families displaced by fighting from different tribal areas was estimated at 260,000.