The United States on Thursday announced $750 million aid to Pakistan for development of the tribal areas under the grip of al Qaeda and Taliban and extended a firm support to President Pervez Musharraf.

US Assistant Secretary of State for South and Central Asian Affairs Richard Boucher announced the assistance after holding talks with Musharraf.

This comes a day after the US Senate overwhelmingly approved a legislation imposing restrictions on American military assistance to Pakistan.

Boucher, who arrived in Islamabad on Wednesday on a surprise visit, announced firm US support to Musharraf, downplaying US media reports that Washington began looking beyond him to lead Pakistan.

"Pakistan and United States are close allies under the leadership of President Musharraf. Pakistan is serious in fight in the war against terrorism and President Musharraf is a very true ally of US in the war against terror."

"The United States has been working closely with President Musharraf as it wants Pakistan's success in the war against extremism and developing the country as a stable and modern democratic state."

He said the aid, which was in addition to the three billion dollars five-year assistance package, being provided by the United States since 2003, would be spent on development of Waziristan and other tribal areas bordering Afghanistan.

Boucher said the US would provide 110 million dollars this year for tribal areas and 150 million dollars annually in the next four years.

The amount would be spent on a comprehensive strategy for the area including improvement of health, education and other opportunities for people of the border region.

Referring to the legislations imposing restrictions on US aid to Pakistan, Boucher said that does not reflect the opinion of the Bush administration.

Responding to a question, he said the piece of legislation adopted by the US House of Representatives and the Senate is misunderstood in Pakistan as it is not like that of Pressler Amendment.

Boucher said the US administration has expressed strong opposition to the version passed by the House of Representatives and the Senate adopted an amendment by Senator John Kerry and others.

He said, "The US administration will still try its best to ensure that the final version of the legislation doesn't undermine relations between the two countries."

Boucher said the policy of the US administration towards Pakistan is remarkably consistent.

He agreed that there were different voices in the press and the Congress, because the US is a democratic country but added that the US government's policy is formulated by the American president.

About fencing of the Pakistan-Afghanistan border and peace deals in tribal areas, he said these are matters for the Pakistan government to decide.