The announcements came as two days of high level talks wrapped up in Washington.

Part of the US$40-million in road aid will go to the former Taliban stronghold of the Swat valley, along the country's northwest frontier with Afghanistan. The area was hit hard by a Pakistan army offensive last year to push the Taliban out, forcing many residents from their homes. 

 The US will also sign an agreement on the same day to provide US$51-million to upgrade three thermal power plants in Pakistan.

When Secretary of State Clinton launched the talks on March 24 she said the US hoped to dispel what she called mistrust and misunderstandings in the US-Pakistan relationship.

A joint statement released at the end of the talks included both strong US praise for Pakistan's efforts to combat terrorism and what both sides expect in the future.

The next round of talks will be held in coming months in Afghanistan and Secretary Clinton already has promised to lead the US delegation.