IMF approves loan for Pakistan

Pakistan has received approval for a 1.2 billion US dollar loan from the International Monetary Fund.

It is seen as a big boost for the country in the fight against terrorism as it tries to restore stability amid political and economic turbulence.

The IMF has praised Pakistan for making significant strides in reducing inflation but says it needs to improve its budgetary discipline.

A Pakistani labourer works at a textile factory in Lahore in September 2009.(AFP/File/Arif Ali)