IMF Tells Pakistan to Trim Deficit
Author: Zahid Hussain</br></br>ISLAMABAD, Pakistan--The International Monetary Fund issued a stern warning to Pakistan to take measures to cut its spiraling budget deficit, according to a senior Pakistani government official.</br></br>In an official letter to the government of President Asif Ali Zardari, the IMF warned that the state of the nation's economy is far worse than previously realized and urged immediate fiscal belt-tightening measures, said the official, who has seen the missive.</br></br>A spokesman for the IMF declined to comment on the letter.</br></br>The IMF withheld $3.5 billion in 2010 from its total $11.3 billion loan package for Pakistan in a bid to pressure the country to take action.