According to The Scotsman, ministers will outline their plans in Glasgow this week to double the aid already given to Pakistan.
Much of the cash will be spent on improving education in the border areas of the country to tackle the near non-existent levels of schooling.
In total, the UK will spend 480 million pounds over the next three years in Pakistan, making it the second-biggest recipient of British aid after India.
The funds are expected to be focused in Pakistan's north-west territories bordering Afghanistan, long singled out by authorities as the lawless region where the Taliban and al-Qaeda have formed a base.
International Development Secretary Douglas Alexander said: "The single biggest factor holding Pakistan back is terrorism and religious extremism, and the best long-term solution is to create stability."
He added: "We see the support that we are offering as being a commitment to tackling poverty, supporting democratic reform and economic growth in the region." (ANI)