United States President George W Bush said on Tuesday he would work with Congress to assemble a $3 billion aid package for Pakistan, a key ally in the war on terrorism.

"I will work with the United States Congress on a $3 billion assistance package to help advance security and economic opportunity for Pakistan's citizens," Bush said at a press conference with Pakistani President Pervez Musharraf at the Camp David presidential retreat in the Maryland mountains.

Bush also announced a trade and investment agreement between the two countries, which he said would create 'a formal structure for expanding our economic partnership'.