Clinton pledges major aid to Pakistan

ISLAMABAD, Pakistan, July 19 (UPI) -- U.S. Secretary of State Hillary Clinton announced a major aid plan for Pakistan Monday.

Clinton said funding would be used for projects that would help Pakistan improve its economy and infrastructure.

Clinton made the announcement in Islamabad on the second day of her visit to the country, CNN reported. The projects would be funded by the Kerry-Lugar-Berman Act that authorizes $7.5 billion in development aid to Pakistan over the next five years.

Projects that Clinton said were "long-term investment in Pakistan's future" include construction of several dams, improvements to the country's power grid and hydroelectric power plants and construction or renovation of three medical facilities.

The United States will also invest $100 million to expand credit access for small- and medium-sized businesses, and provide $50 million to support investments in innovation and technology projects, she said.

"This is a long-term process to get Pakistan what it needs in terms of energy," a U.S. official told CNN Sunday.

During a news conference with Pakistani Foreign Minister Shah Mahmood Qureshi, Clinton said the United States is working with Pakistan to fight terrorism and pledged to improve U.S.-Pakistani relations, Pakistan's English-language newspaper Dawn reported. Qureshi said both countries devised clear directions to acquire objectives.

Clinton said she felt positive about the state of the relationship between the two countries.

Clinton said U.S.-Pakistani relations, having a "legacy of some mistrust," would improve steadily.

Qureshi said U.S. and Pakistani officials were talking -- and listening -- to each other while recognizing the two countries have different interests that must be respected.