The money transfer from Washington on Wednesday brings the total to more than one billion dollars received by Pakistan since joining the fight against terrorism in 2001, they said.

"We have received a payment of 256 million dollars from the US that has driven the (forex) reserves to 11 billion dollars," said Syed Wasimuddin spokesman for the central State Bank of Pakistan.

Pakistan had earlier received a cumulative amount of 847.2 million dollars for its support to the US-led coalition in Afghanistan.

Pakistan has provided at least three air bases to the US-led force while its security forces have rounded up some 500 al-Qaeda suspects in the past 20 months.

The captives mostly handed to the US, included Khalid Sheikh Mohammed and Ramzi bin al-Shaiba, both alleged co-planners of the September 11 terror attacks, and Osama bin Laden's deputy Abu Zubaydah.

The foreign exchange reserves have been rising since Pakistan abandoned its support to Afghanistan's Taliban regime in the aftermath of the September 11, 2001 attacks on the US.

Islamabad has received financial rewards from Washington for providing pivotal support both to the military campaign against Taliban militia and the ongoing hunt for al-Qaeda terrorists.

The US had already written off more than one billion dollars in Pakistani debt and Islamabad also secured the rescheduling of 12.5 billion dollars of debt for the next 38 years.

President George W. Bush last month pledged to work with Congress on a three billion-dollar package to help advance security and economic opportunity for the citizens of anti-terror ally Pakistan.

Under the aid programme, which has to be approved by the US Congress, Pakistan will receive 600 millions dollars annually until 2007.

The US also signed a trade and investment framework agreement (TIFA) after Camp David talks with President Pervez Musharraf, who is trying to slash Pakistan's debt and attract investment for its struggling economy.

TIFA will allow Pakistani traders greater access to lucrative US markets.

Pakistani cotton and textile exports account for almost half the country's total exports, which stand at around 11 billion dollars for the year ending June 30.

The US is the largest buyer of Pakistani imports, purchasing about one billion dollars worth of goods

WAR.WIRE