ISLAMABAD, Aug 18: Pakistan and the United States on Monday signed an agreement for $115.7 million grant-in-aid support to the National Health and Population Strategy and Poverty Reduction Strategy Paper (PRSP).

Another agreement would be signed next week for a $40 million assistance for democracy and governance sector. Last week, the US signed a $53 million agreement to support Pakistan’s micro-finance and social sectors.

Nancy J. Powell, US Ambassador, Mark S. Ward director Pakistan USAID, and Dr Waqar Masood Khan secretary economic affairs division signed the agreement on behalf of their respective sides.

US ambassador Nancy Powell later told reporters that the disbursement of the $3 billion economic package to Pakistan would commence from Oct 2004 at the rate of $600 million annually after congressional approval. This would include $300 million each for defence and economic support.

Talking about the $ 115 million grant-in-aid agreement she said it would make healthcare services available specially to women and children.

The USAID will work with the ministries of health and population, provincial and district governments and the private sector to improve service delivery in semi-urban and rural areas. “This new initiative supports 10 of the 12 objectives outlined in the government of Pakistan’s 10-year perspective development plan 2001-2011,” Mark Ward said.

The key results of this initiative will include increased availability and quality of reproductive health services, improved health resource management, administration and decision- making at the provincial and district levels; strengthened maternal/child health services at the district and tehsil levels; and improved services for preventing communicable diseases such as HIV/Aids, polio and tuberculosis.

The USAID intends to cooperate with the British department of international development and the United Nations Population Fund to implement some of the programmes.

Ms Powell said that the process of discussion for the modalities and identification of the areas had begun for $3 billion support committed by the US government for Pakistan.

Regarding the lapse of market access on the part of Pakistani exporters, Powell said that the market access granted last year cannot be made good and it would not be carried forward. “At the time when Pakistan was granted enhanced market access in specialised commodities it was under the condition of “use it or loose it” and it was not meant for carrying forward,” she said.

Mark Ward said that the agreement that was signed on Monday together with the last two signed recently made a total assistance amounting to $268.7 million available from the on-going grant commitments by the US and not out of the recently committed $3 billion.

“There would be another agreement next week with Pakistan government for grant-in-aid of around $40 million for the projects to be covered under the larger governance reforms programme of the government,” Mr Ward said. Ahmed Yar Hiraj, State Minister of Health, was also present on the occasion.