The United Kingdom has pledged a financial assistance Rs 20.06 billion (£172 million) to Nepal to support peace process, better governance, providing basic services, economic growth and jobs and climate change.

UK provided the assistance under its three-year country business plan ending in July 2012. “This represents an increase of 46 percent from the previous three-year plan,” a press release issued by the Department for International Development (DFID) said.

Visiting Minister for International Development Mike Foster announced the aid packages while launching the three-year plan at the end of his three-day tour on Thursday.

Foster said that the support would help address the impact of global economic downturn on Nepal by helping to increase economic growth and making it easier for businesses to invest and creating thousands of new jobs.

The assistance is intended to give more than two million people better access to work and basic services, such as education and hospitals, by building new roads across the country.

Foster also announced an extra help of Rs 423 million for 285,000 people affected people by drought and conflict in the remote Western Hills of Nepal.