Pakistan agrees to a $7.6 billion loan package with the International Monetary Fund but the failed nation has little hope
Primal Karnus
Nov. 15, 2008

Pakistan agreed to a $7.6 billion loan package with the International Monetary Fund, to help the south Asian country avert defaulting on its debt with the first such program in four years.

But according to think tanks the country has little hope of surviving the economic crisis. The $7.6 billion loan package will be good for 2009 and them back to square one.

The loan ``will be used for the balance of payments and to build our foreign reserves,'''' Shaukat Tarin, the finance adviser to the prime minister, said today at a televised news conference in Karachi. The IMF will give the loan in installments over 23 months at interest rate of 3.5 percent to 4.5 percent, he said.

Pakistan has been forced to seek funds from the IMF after its foreign-exchange reserves shrank 75 percent in the past year to $3.5 billion last week, the equivalent of one month's imports, and a group of donor nations declined to provide funds.

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