Bishop made the pledge during a two-day visit to Islamabad, where she is holding talks with her counterpart Sartaj Aziz on efforts to counter militancy, the future of Afghanistan and the reported rise of the Islamic State group in the region.
The aid package includes $8 million to help restore infrastructure damaged by floods and conflict in the restive northwest and southwest, and around $8 million to support a trade initiative in partnership with the World Bank.
It has not yet been announced where the remaining assistance will be spent.
Bishop added the two countries "have common interests in countering transnational crimes including drug- and human-smuggling".
Thousands of Hazaras have in recent years fled to Balochistan bound for Australia, which in 2013 introduced a military-led operation to turn back boats carrying asylum-seekers before they reach the continent.
Bishop said she would also encourage Australian tourism to Pakistan, which has been battling a homegrown insurgency for over a decade.
"People-to-people links are important and of course we want to see Pakistan as a safe and secure environment so that you can engage international visitors," she said.
Regarding the Islamic State organisation, which has seized swathes of territory in Iraq and Syria, Bishop said: "We believe that there are around 100 foreign terrorists from Australia currently in Iraq and Syria supporting this... barbaric and terrorist organisation."
Australia encourages India, Pakistan to resolve Kashmir dispute
Australian Foreign Minister Julie Bishop on Wednesday said that her country will encourage both Pakistan and India to resolve their longstanding dispute over Jammu and Kashmir.
Addressing a joint news conference with PM Advisor on National Security and Foreign Affairs Sartaj Aziz, the visiting foreign minister, however, made it clear that Australia does not want to take sides, but rather wants Islamabad and New Delhi to resolve their disputes bilaterally.
PHOTO: AFP
Read: Australia Day in Spring: Australian embassy works to bridge gap with Pakistan
Bishop arrived here on a first visit to Pakistan as Australian foreign minister. She held formal talks with Sartaj Aziz and will also call on Prime Minister Nawaz Sharif as well as the Army Chief Raheel Sharif.
PHOTO: AFP
She told reporters that her visit highlights the importance Australia attaches to its bilateral ties with Pakistan.
She said Australia will provide $24 million in financial assistance, including $10 million for the rehabilitation of internally displaced persons in the tribal areas of Pakistan.
The top Australian diplomat also highlighted the threat of terrorism and pointed out that Islamabad and Canberra could closely cooperate with each other in order to counter violent extremism.
PHOTO: AFP
She said Australia will be holding a summit on counter-terrorism in June.
Sartaj Aziz told reporters that Pakistan is looking forward to enhance trade and economic ties with Australia. Aziz added that the prime minister is expected to visit Australia later this year.
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