In a development that is likely to fuel the controversy surrounding the use of aid money in the current political climate, the International Monetary Fund has granted Pakistan $1.3 billion in loans.

Aimed at reducing levels of poverty, the deal follows an earlier aid package geared to reducing the country’s massive foreign debt of $38 billion, which is almost three times the value of its annual exports. The IMF hopes the loan will also act as a vote of confidence that could pave the way for further debt relief from other European economies.

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