ISLAMABAD, Pakistan—The Pakistani rupee tumbled as much as 10% Tuesday after the government said it is seeking a bailout from the International Monetary Fund, which will lead to tough economic policies that will slow growth.
The new government of Prime Minister Imran Khan had promised millions of new jobs and the creation of an “Islamic welfare state.” Instead it now looks like it is going to have to rein in spending and increase taxes. At the same time, the weak rupee will lead to higher inflation.
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