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The economy of Pakistan was in trouble before 11 Sept, with huge foreign debts, stalled economic reforms, and US economic sanctions because of its nuclear weapons programme. Although economic difficulties remain, the situation was transformed by Pakistan�s tacit alliance against the Taliban. Aid from the IMF has materialised, trade concessions have helped exports, and the reform programme of President Musharaff is beginning to take hold. However, the economy is still vulnerable to the effects of drought, war tensions with India, and weak export markets which make it difficult to repay its debts.
 BBC News Online business reporter Emma Clark looks at the way Pakistan's economy has benefited from its alliance with the West.

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