http://www.forbes.com/afxnewslimited/feeds/afx/2008/11/16/afx5700264.html

KARACHI, Nov 17 (Reuters) - The Pakistani rupee should stabilise in the short term after the country agreed with the International Monetary Fund (IMF) on a $7.6 billion emergency loan to stave off a balance of payment crisis, analysts said.
The IMF said on Saturday its executive board is expected to meet shortly on the 23-month standby credit after IMF and Pakistan agreed on a reform programme.
ble in the short-term on primarily improvement in the sentiment as the uncertainty is now over,' said a currency dealer.
Pakistan had been in talks with the IMF for months, but officials had been coy about admitting they were seeking an IMF package because of the harsh conditions the Fund often proposes.
The rupee lost 23 percent against the dollar since the start of the year. However, analysts said the rupee would only stabilise in the long-term when there is an improvement in inflation and the current account deficit.

'We cannot expect exchange rate stability to continue in the medium term unless there is marked improvement in the current account deficit and inflation goes down,' said Asif Qureshi, head of research at Invisor Securities Limited.
Pakistan is facing inflation over 25 percent, widening current and fiscal deficits and foreign reserves just enough to cover nine weeks worth imports.