The amount will be distributed as: Rs25,000 for each affected house; Rs100,000 for families lost their member/members; and Rs25,000-50,000 for each injured.
A portion of the amount has already been released to the NWFP and Azad Kashmir governments.
The President said national volunteer movement has a potential to help the country carry out enormous relief, reconstruction and rehabilitation tasks following the last month's devastating earthquake.
"I am hopeful that through this movement we will be able to harness the spirit, patriotism and the nation-wide desire to contribute and assist the earthquake victims in rebuilding their lives," he said
Minister of state for youth affairs briefed the President and the Prime Minister on ways and means for facilitating youths' participation in the movement.
The President said armed forces would provide administrative assistance to volunteers.
The Prime Minister said the entire country was indebted to the selfless devotion and spirit shown by all segments of society and adequate steps would be taken at the national level to acknowledge their contribution in the service of humanity.