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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > International > Article Home Business & Finance News U.S. Politics International Technology Entertainment Sports Lifestyle Oddly Enough Environment Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Donors pledge over $5 billion for wobbly Pakistan Fri Apr 17, 2009 9:55am EDT Email | Print | Share | Reprints | Single Page [-] Text [+] By Chisa Fujioka and Yoko Kubota TOKYO (Reuters) - Pakistan secured more than $5 billion in fresh aid over two years at a donors conference on Friday after President Asif Ali Zardari vowed to step up the fight against militants. The pledges, bigger than an expected $4 billion, reflect the international community's worries an economic meltdown in Pakistan, propped up with a $7.6 billion loan from the International Monetary Fund over two years, could fan popular support for al Qaeda and other militant groups. "The participants also noted concern about the security situation in Pakistan and the impact on development, the investment climate, and growth," co-chairs Japan and the World Bank said in a statement. The new aid is targeted for areas such as health, education, governance and building democracy. Commitments to existing aid programs totaling $15 billion were also reaffirmed. Foreign investors are eager to see Islamabad proceed with tough economic reforms considered vital to restore growth. Pakistan narrowly averted a balance of payments crisis in November when it secured the IMF loan package. World Bank Vice President for South Asia Isabel Guerrero told a news conference the funds must be used effectively. "It is very important that these development resources are used in a way that they do reach the poor, that they do increase the productivity of Pakistan's economy, so that Pakistan can go back to a high growth path and to poverty reduction." "Pakistan has one of the lowest tax revenue-over-GDP in the world, and therefore the efforts that the economic team is doing right now to increase domestic taxes are very important for Pakistan's needs," she said. "IF WE LOSE, YOU LOSE" Nuclear-armed Pakistan is central to U.S. President Barack Obama's plan for South Asia. That plan includes trying to stabilize Afghanistan where Taliban militants, many operating from lawless enclaves in northwest Pakistan, have thrown the effort into doubt. Zardari assured Islamabad's allies that Pakistan would do its utmost to deliver on economic reforms and fighting militants. "Despite the fact that I lost the mother of my children, I have taken up this challenge ... to lead Pakistan out of these difficult times," said Zardari, the widower of assassinated former prime minister Benazir Bhutto. "If we lose, you lose. If we lose, the world loses," he said. U.S. special envoy Richard Holbrooke lauded the outcome of the donors gathering. "This conference is an extreme success," he told reporters. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! 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