IMF offers 1.13-bln-dollar loan in aid to Pakistan

13:49, May 16, 2010      

Email | Print | Subscribe | Comments | Forum 

The International Monetary Fund ( IMF) released 1.13 billion U.S. dollars of loan to Pakistan as the country's economy still shows vulnerability due to persistent inflation and volatile security situation, local media reported Saturday.

Despite concerns IMF cautiously notices some improvement in Pakistan's economy. The Fund said Pakistan's economic conditions had improved even though the country faces "adverse security developments and a rapidly changing political environment," ARY TV reported.

The IMF has so far extended 7.7 billion dollars including the current installment to Pakistan. It has also agreed to grant some waivers on Pakistani request including combining the remaining three installments into two after assurance of implementation of Value Added Tax (VAT) and increasing budget deficit.

"There is no other option but to take the loan," Syed Zafar Ali Shah, Pakistani former Finance Adviser, commented about the economy of 170 million inhabitants Islamic republic that heavily depends on foreign loans and aid packages and is the frontline state in the war-against-terror.

Meanwhile, the private TV GEO quoted Pakistani Finance Advisor Abdul Hafeez Shaikh as saying that approval of installment of loan from IMF reflects confidence on the government policies.

On the other side, the IMF said Pakistan's economy remained highly vulnerable, and listed worry spots ranging from persistent inflation to security-related spending pressures.

Source: Xinhua


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • On Sept. 26, a resident passes by a flower terrace decorated for the coming National Day. (Xinhua/Hang Xingwei)
  • The photo, taken on Sept. 26, shows the SWAT team ready for the joint exercise. (Xinhua/Wangkai)
  • Two metro trains in Shanghai collided Tuesday afternoon, and an identified number of passengers were injured in the accident, the Shanghai-based reported. Equipment failures were believed to have caused the crash on the Line 10 subway, Xinhua quoted local subway operator as saying.
  • An employee at a gold store in Yiwu, located in east China's Zhejiang province, shows gold jewelry on Monday.(Xinhua/Zhang Jiancheng)
  • Tourists ride camels near China's largest desert lake Hongjiannao in Yulin, north China's Shaanx Province, Sept. 24, 2011. Hongjiannao is shrinking as a result of climate change and human activities, and may vanish in a few decades. Its lake area, which measured more than 6,700 hectares in 1996, has shrunk to 4,180 hectares. Its water level is declining by 20-30 centimeters annually and its water PH value has risen to 9.0-9.42 from 7.4-7.8. (Xinhua/Liu Yu)
  • Actors perform royal dance at the Gyeongbok Palace in Seoul, Sept. 27, 2011. A ceremony commemorating the 38th South Korea Sightseeing Day was held in Gyeongbok Palace on Tuesday. (Xinhua/He Lulu)
Hot Forum Discussion