$500 million loan to shore up Pakistan economy

KARACHI: Pakistan's central bank says it has received a $500 million loan from the Asian Development Bank to help shore up the country's ailing economy.

Central bank spokesman Syed Wasimuddin said Saturday the money is the first installment of a US$1.5 billion loan designed to support economic development in Pakistan.

The funds will top up Pakistan's foreign currency reserves and help restore some confidence in its sagging currency. Pakistan also faces high inflation and slowing growth.

The United States, which counts Pakistan as a key ally in its war on terror, also is pledging more economic support. Pakistan is also seeking assistance from Saudi Arabia.