The International Monetary Fund has warned Pakistan that its economic growth could be worse than expected next year due to strict austerity measures built into a 6.7 billion dollar rescue loan. Pakistan is in the grip of its worst energy crisis in modern history which causes power outages up to 20 hours in parts of the country and has hammered industrial output. During the last five years, GDP has averaged only three percent, far short of the seven percent considered necessary to lift the country out of poverty and fully absorb the growing labour force. Central bank reserves have fallen to 6 billion dollars, down from 14.78 billion dollars in fiscal year 2010-11 and are enough only to cover imports for one and a half months.On September 5, the IMF agreed to extend Pakistan a three-year 6.7 billion dollar loan, making an initial disbursement of 540 million dollars available to the authorities. The loan is aimed at reducing Pakistan's fiscal deficit, which neared nine percent of gross domestic product last year, to a more sustainable level and reform the energy sector to help resolve severe power cuts that have sapped growth potential. But future disbursements are dependent on the completion of tough economic reforms measured at quarterly reviews