The Abu Dhabi Fund for Development (ADFD), on behalf of the UAE Government, has signed a memorandum of understanding with the UAE Project to Assist Pakistan, to give a $100m (AED367.3m) grant to fund projects in Pakistan.
The grant will fund three vital development projects to bolster transport, education and health sectors, news agency WAM reported.
The grant includes AED223m to fund the construction of Makeen-Miranshah Road, which will link South Waziristan with North Waziristan running though three cities and 20 villages.
A further AED9m will be used to fund the second phase of the 1,000-bed UAE Specialist Hospital in Islamabad, one of the biggest healthcare projects under construction in Pakistan. When completed, the hospital will be able to serve 6,000 outpatients a day.
Another AED46m will be used to build three vocational colleges in Khyber Pakhtunkhwa province, WAM said.
Mohammed Saif Al Suwaidi, acting director general of ADFD, said: "The grant, which is under the directives and the direct follow-up by the UAE prudent leadership, reflects the UAE government's interest in extending a helping hand to developing countries across the world in order to contribute to efforts to alleviate their suffering.
"The UAE is interested in being an effective partner in effective development projects, in particular in infrastructure sector which is a pillar of economic and social development and the solid foundation of growth and prosperity of societies."
ADFD started its activity in Pakistan in 1981 when it provided a loan worth more than AED66m to fund the building of Tarbela Dam on River Indus to boost Pakistan's electricity sector.