WASHINGTON, Feb 23: The United States is working on a major economic package for Pakistan and Afghanistan, besides involving the two countries in formulating a new security strategy for the region.

Diplomatic sources told Dawn that Richard Holbrooke, the US special envoy for Afghanistan and Pakistan, had recently invited about a dozen economists from the two countries for discussing various proposals for the economic uplift of the region.

The participants said that the United States was developing a multi-pronged approach for ending terrorism and militancy from the Afghan-Pakistan region, with a major emphasis on economic development.

A former Pakistani finance minister, Shahid Javed Burki, who also participated in the meeting, proposed a $60 billion package for economic development in Pakistan.

Under this proposal, the donors will contribute half of this fund while Pakistan will provide the other half. Since Pakistan does not have that kind of cash at this stage, the donors will make their contributions first.

The donors will also be involved in formulating various programmes for economic development and also in implementing them.

Diplomatic sources told Dawn that the Americans seemed “very interested” in the proposal, which would also call for establishing a social security system in Pakistan and for easing the economic burden on ordinary people.

Mr Burki also suggested that since the Pashtoons living on both sides of the border were one community, the Durand Line should be treated as a soft border.

Former Afghan finance minister, Ashraf Ghani, also supported the proposal.

Meanwhile, the US State Department said on Monday that the US, Pakistani and Afghan delegations would discuss “shared concerns” and “shared problems” in a trilateral meeting in Washington on Thursday.