The World Bank has approved a $250m loan and a $35m grant for Pakistan to help vulnerable communities in areas rocked by conflict.

The loan announced Thursday aims to bolster Pakistan’s recovery efforts in the Khyber Pakhtunkhwa (KP) province and Federally Administered Tribal Areas (FATA). The grant, meawhile, will be co-financed by the Multi-Donor Trust Fund (MDTF), the Washington-based international development lender said.

"This combined support comes at a critical juncture in order to assist the poor and vulnerable households to cope with income shock due to militancy crises in KP and FATA," the bank added.

These areas have been hit for about a decade by conflict between the Pakistani army and Islamist groups believed to be close to Al-Qaeda and the Afghan Taliban.