The package includes 300 million dollars in assistance to help it restore infrastructure and the economy in Pakistani Kashmir and Northwest Frontier Province, the two areas that bore the brunt of the October quake which killed about 73,000 people.

The quake left another 70,000 severely injured or disabled in Pakistan. More than 2.8 million people have been left without shelter and 2.3 million are without adequate food.

The cost of reconstruction and restoring services is estimated at 3.5 billion dollars, the Philippines-based lender said in a statement.

"The project aims to quickly reverse the devastating impact of the earthquake and revive economic activity to enable people to resume their livelihoods and return to normal life," said Fernando Garcia, an ADB transport specialist.

By far the largest component of the total aid package is a multi-tranche financing facility (MFF) of up to 770 million dollars and a related three million-dollar loan to upgrade the country's highway network.

"The MFF structure, the first to be used in ADB's operations and in Pakistan, was deemed most appropriate to meet the government's long-term needs, as it provides a flexible facility that combines large-scale financing with promotion of reforms and adherence to safeguard and oversight requirements," said ADB transport specialist Allan Lee.

The MFF assistance can be used over 10 years, during which individual financing requests will be converted into separate loans. Most of them are expected to be at market rates.

Another component is a 200 million-dollar loan at market rates and payable over 15 years to improve fiscal and financial governance in Punjab province.

"Long-term change management can only be sustained through a professional and accountable civil service. In addition, effective long-term resource management will entail rationalizing the role of the public sector," said ADB management specialist Jorn Brommelhorster.

Lastly, the bank also approved two loans totalling 60 million dollars for an urban renewal project in Rawalpindi aimed at improving the city's water supply and sanitation facilities.

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