Britain is to provide $910 million to Pakistan to reduce poverty, reform madrassas and improve the delivery of health and sanitation services and clean water.
The "Long Term Development Partnership Arrangement" was signed after one-on-one and delegation level meetings between Prime Minister Shaukat Aziz and his British PM Tony Blair.
Under the agreement, the UK Department For International Development (DFID) will provide Pakistan $201 million in the UK financial year 2007-08. The total funding of $910 million will cover the period between UK financial year 2008-09 and financial year 2010-11.
The Daily Times reports that "much of the cash will go towards promoting President Gen Musharraf's policy of 'enlightened moderation' in madrassas that have been blamed for radicalising Muslim youths, including visiting Britons".