IMF releases $451million loan for Pakistan floods

The International Monetary Fund says it is making a $451m emergency loan to Pakistan available immediately.

The IMF said the money would help Pakistan cope in the aftermath of the floods that have affected about 18 million people.

It said it hoped its decision would encourage more lending by international donors.

Meanwhile, new flooding has been reported from around the town of Dadu, near the Indus river in Sindh province.

The army is continuing relief efforts, rescuing hundreds of people trapped or isolated by floodwaters, in the area.

"The [IMF] board's approval enables the immediate disbursement of the full amount of this emergency assistance," the IMF said in a statement.

"Pakistan's economic outlook has deteriorated sharply as a result of the floods. The agriculture sector, which accounts for 21% of Gross Domestic Product and 45% of employment, has been hit particularly hard," it added.

The floods which hit the country at the end of July have killed at least 1,500 people and devastated large areas.

The United Nations has said that billions of dollars would be needed in the long term.

But charities say the response to the UN's appeal has been sluggish.

The US has made the biggest contribution so far, followed by the UK.

UK Deputy Prime Minister Nick Clegg has called the international response "lamentable".

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Pakistan needs civilian rule, says US envoy

The US has dismissed suggestions that the Pakistani military could form a viable alternative to the civilian government, widely criticised for its handling of the country's flood crisis.

Special envoy Richard Holbrooke praised civilian politicians and said the US would support only an elected civilian government in Pakistan.

The army has been widely praised for its response to the floods.

Pakistan has a history of coups and only returned to civilian rule in 2007.

But some observers have suggested that the floods, combined with a widespread Islamist insurgency, are making it impossible for civilian politicians to govern.


    We intend to see this wonderful country and its people through these troubled times”

 Richard Holbrooke US special representative said.

     Indus flood diary

Mr Holbrooke, who is in Pakistan visiting flood-affected areas, told reporters: "We will only support a civilian, democratically elected government.

"I think the Pakistan government has done a fantastic job [handling the floods] so far - and we are here to help in any way we can."

However, he added that the US was happy to work with the Pakistani army, "which is a part of this government".

The US has been the biggest aid donor to Pakistan since the floods hit, devastating large parts of the country and affecting about 18 million people.

US officials say the country has donated more than $260m (£166m) for flood relief, and has provided 18 military helicopters to evacuate people and deliver food and supplies.

The US has also provided water-purification kits and deployed medical teams to help prevent the spread of disease.

In a boost to the aid effort, Mr Holbrooke said the US would begin diverting cash from US-funded infrastructure projects into flood relief.

And he denied that the US was helping Pakistan in a bid to bolster the fight against Islamist militancy in Pakistan and Afghanistan.

"This is a humanitarian effort and we intend to see this wonderful country and its people through these troubled times," he said.

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