IMF board approves $3b Pakistan deal

The International Monetary Fund (IMF) said Wednesday that it has approved a $3 billion loan agreement for Pakistan, unlocking crucial funding for the troubled South Asian economy.

In a statement, the IMF said its executive board gave the green light to the nine-month standby arrangement, in order "to support the authorities' economic stabilisation programme."

This follows a staff-level agreement between the fund and Pakistan announced last month, and the latest approval allows an immediate disbursement of around $1.2 billion.

Pakistan has suffered from a balance-of-payments crisis as it attempts to service crippling external debt amid a fraught political environment -- following the removal of the country's former prime minister Imran Khan.