A $3 billion (£2.3 billion) bailout for Pakistan has received board approval from the International Monetary Fund (IMF).
The country in crisis will receive approximately $1.2 billion upfront, with the remaining amount to be paid over the following nine months.
The South Asian country had just enough foreign currency to cover a month’s worth of imports but was on the verge of going into default on its bills.
The nation also got funding this week from Saudi Arabia and the United Arab Emirates (UAE), two allies.
The bailout, according to Pakistan’s Prime Minister Shehbaz Sharif, was a significant advancement in attempts to stabilise the economy.
“It bolsters Pakistan’s economic position to overcome immediate to medium-term economic challenges, giving next government the fiscal space to chart the way forward,” he said.
The IMF deal came after eight months of tough negotiations over how to deal with serious long-term issues with Pakistan’s ailing economy.
The country had been on the brink of being unable to meet debt repayments to creditors.
Much of the country was hit by devastating floods last year, which added to other major problems faced by the country, including high inflation and economic mismanagement by successive governments.
Saudi Arabia deposited $2bn with Pakistan’s central bank on Tuesday, Pakistan’s Finance Minister Ishaq Dar said.
