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Pakistan secures IMF loan

The Pakistani government approved Saturday of a $7.6 billion loan from the International Monetary Fund.

According to CNN, the money will be used to “bolster Pakistan's dwindling foreign currency reserves amid concern that a run on the Pakistani rupee could force the country to default on its international debt.�

The IMF loan will be paid out over the course of two years. The only obstacle in deciding the factors of the loan was disagreement between Pakistan and the IMF over interest rates.

The Daily Times, a local newspaper in Pakistan, focused the length of its coverage on the reactions of Pakistanis to the loan. “The IMF assistance would strengthen country’s financial institutions, which would lead to revitalisation of the economy, said Iftikhar Ali Malik, Co-Chairman of Businessmen Panel, the largest alliance of chambers and traders of Pakistan.�

It is clear from both articles that economic stability is the main goal of the loan, and that it has the potential to bring great change to Pakistan’s economic, and even political, outlook.