SAVE MONEY ON TRAVEL DEALS

The unpopular "standby agreement" with the IMF to save the country from an economic collapse was the only way to establish trust with Pakistan's allies and get them to commit to a bailout package, Dawn quoted the official as saying. "There was a lack of trust."

Pakistan needs about $7.6 billion to resolve its immediate balance of payment problems and other economic issues. The Dawn report quoted a source in the Pakistani foreign office as saying the allies doubted the government's ability to improve its economy without IMF's oversight.

Only China had offered to give $500 million, the report said.

Shauna Train, finance adviser to Pakistan's prime minister, was quoted as saying the IMF was the last resort.

"We have only committed to the IMF to increase the tax-to-GDP ratio to 15 percent from over 9 percent in five years", Train said.

In a separate report, the newspaper, quoting diplomatic sources, said the IMF has asked Pakistan to introduce agriculture tax as a way to raise revenue.

The report said IMF's executive board will meet Friday to review its economic program for the country.

 BREAKING STORIES

U.N. agencies assess Indonesian quakes

Security Council meets on Gaza invasion

Thailand deemed ready to host ASEAN

NATO welcomes additional U.S. troops

Ban Ki-moon calls for Bhutto slay probe

U.N. provides Zimbabwe with cholera aid

2008 among Earth's warmest since 1850

U.N. body adopts Mideast peace resolution

U.N. says Zimbabwe cholera toll near 1,000

Sources say NATO eyeing Afghan route

Groups want enviro-funds out of World Bank

U.N. sees surge in North Korean hunger

U.N. expects Zimbabwe cholera toll to rise

British author UNESCO Artist for Peace

NATO calls on Russia to return to treaty

U.N. urges radiation to spur plant growth

U.N. declares 2009 Year of the Gorilla

NATO to resume dialogue with Russia

WTO opens key talks on cotton exports

Lavrov says Russia ready for NATO dialogue