IMF board approves 7.6 billion dollar credit to Pakistan

WASHINGTON, November 24, 2008 (AFP) – The International Monetary Fund said Monday its executive board approved a credit of 7.6 billion dollars for Pakistan, the Fund’s first rescue in Asia since the global financial crisis began.

The credit will “support the country’s economic stabilization program,” the IMF said in a brief statement.

The Fund and Pakistan had already announced an agreement in principle earlier this month on the package, aimed at staving off a balance of payments crisis that has raised the prospect of the violence-hit nation defaulting on its foreign debts.

Pakistan’s precarious financial situation has caused worldwide alarm due to its role as a key ally in the US-led “war on terror” and its position as the Islamic world’s only nuclear power.