Pak,IMF agree to 5.3 bn bailout

Pakistans previous government failed to implement many of the requirements of the last loan,including reducing the deficit and improving tax collection,and ended the programme early. That left the new government,which took over in June,with the difficult task of convincing the IMF that this time would be different.

It is true that some previous programmes have not been completely successful, IMF chief in Pakistan Jeffrey Franks said. But the IMF is in the job of helping countries when they have difficult situations and need help,and were not going to turn a country down because previous governments did not do what they had promised to do.

The 5.3 billion loan will be disbursed over a three-year period and will have an interest rate of roughly three percent,said Franks. It will be repaid over 10 years after an initial grace period of four years.

The deal has been approved by the Pakistani government and IMF staffers in the country,but it still needs to be approved by IMF officials in Washington and the institutions executive board.