IMF approves $451mn loan for flood-hit Pakistan

ISLAMABAD - The International Monetary Fund (IMF) will give a $451-million loan to Pakistan to help accelerate the rehabilitation work after floods ravaged the country, a media report said.

“The (IMF) board’s approval enables the immediate disbursement of the full amount of this emergency assistance,” Geo TV reported quoting a statement by the Washington-based body Wednesday.

Floods since July have left 10 million people homeless and eight million surviving on aid handouts in Pakistan, the UN said.

The IMF said the cash would “help the country manage the immediate aftermath of the massive floods that have hit the country” and spur more lending by international donors. The loan will fill its budget hole left by flooding.

“Pakistan’s economic outlook has deteriorated sharply as a result of the floods. The agriculture sector, which accounts for 21 percent of GDP and 45 percent of employment, has been hit particularly hard,” the IMF said.