IMF approves $497 million loan for Pakistan

The International Monetary Fund has agreed to provide a $497 million (nearly Rs 3,159.7 crore) tranche for Pakistan as part of a bailout package agreed in 2013.

The decision was made after a crucial meeting between IMF and Pakistani official this week in Dubai.

"After constructive discussions, the mission and the Pakistani authorities have reached staff-level agreement on the completion of the tenth review under the EFF (Extended Fund Facility) arrangement," IMF said in a statement.

The disbursement of the agreed amount will be made after requirement by the IMF board approval but it will be just a formality after the agreement reached with Pakistan.

The IMF will still have to release $1.1 billion (nearly Rs 7,442.6 crore) of the total $6.7 billion (nearly Rs 45,332.2 crore) loan agreed three years ago.

The loan helped Pakistan in 2013 to avoid a default when foreign exchange reserves had depleted to a dangerous level.

The privatisation of 68 state-owned companies, which include loss-making enterprises like Pakistan International Airlines, is a crucial part of the IMF deal.