By Arshad Mohammed

The United States said on Tuesday it would give Pakistan $110 million to help the estimated two million people who have fled fighting between the Pakistani army and the Taliban in the Swat Valley. Militant violence in nuclear-armed Pakistan has surged over the past two years, raising doubts about its stability and alarming the United States, which needs Pakistani action to help defeat al Qaeda and stabilize neighboring Afghanistan. After sharp U.S. criticism that Pakistan was abdicating its authority to Taliban militants in Swat, the Pakistani military earlier this month began an offensive to retake the picturesque valley, which is 60 miles from the capital Islamabad.

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