Pakistan to get $ 7.6 billion from IMF

The International Monetary Fund (IMF) has "in principle" agreed to extend a credit of 7.6 billion dollars to Pakistan to stabilise its ailing economy and help it avoid defaulting on foreign debt repayments, the government said.

"Pakistan would get 4.6 billion dollars this month while the remaining 3 billion dollars would be disbursed next year," Pakistan's Advisor on Finance Shaukat Tarin told.

Tarin said the credit facility will be for two years under a standby arrangement.
"The facility has been obtained to strengthen the country's foreign exchange reservoirs and it will not be utilised to bailout the stock market".

He said the repayment of the credit will start in 2011 and will be completed in five years time. The rate of interest would be between 3.51 to 4.51 per cent.