World Bank pledges $1.4 billion in support to Pakistan

Trade deficits, galloping inflation, increase in the level of poverty, power outages, water shortages, closure of industries and food insecurity. A worsening economic crisis in Pakistan is pushing millions more people into poverty, and experts fear that it could help Islamic extremists recruit new converts.

Inflation is running at 25 percent, according to official figures, electricity is in short supply, and Pakistan's currency, the rupee, has been devalued 25 percent against the dollar. Investor confidence has fallen so low that on Monday, police had to surround the Karachi Stock Exchange to protect it from angry investors.

Pakistan is looking for at least $10 billion to bail it out and is pinning its hopes on a meeting in Abu Dhabi likely either later this month or early in November, of a newly-established consortium known as "Friends of Pakistan" which includes the United Arab Emirates , China and the U.S., economic experts said.

The World Bank has promised to provide $1.4 billion aid to Pakistan in the current year to overcome its ongoing economic crises. The amount includes $600 million for investment and $800 million for budget support as macroeconomic stabilization program moves forward.

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