Pakistan says the United States has granted it nearly $400m in aid - half of which it will give back to Washington to pay off debt.
Pakistan's Foreign Minister, Shaukat Aziz, said the rest of the money would be spent on health and education.
Mr Aziz said the Bush administration was also working to get Congress to approve a further $3bn dollars in aid.
Pakistan has been given financial incentives by the US and its allies for supporting the US-led war on terror.