KARACHI, Pakistan, (AP) – Pakistan’s top finance official says the International Monetary Fund has agreed “in principle” to lend it $7.6 billion to avert an economic crisis.
Shaukat Tareen said Saturday that Pakistan would apply formally for the loan next week. The IMF has already signaled that it will respond quickly.
Pakistan needs funds urgently to augment its foreign currency reserves and avert a run on its currency and a default on its international debt.
The country can ill afford an economic crisis as it faces surging violence blamed on Taliban and al-Qaida militants based in the northwest, close to the border with Afghanistan.