IMF approves $6 billion loan for Pakistan to right the nation's economy

The International Monetary Fund on Wednesday approved a $6 billion, three-year loan for Pakistan to try to right the nation's economy, reported news agency AFP.

The IMF board released $1 billion to Pakistan immediately and said in a statement that the programme aims to "support the authorities' economic reform programme" and to help "reduce economic vulnerabilities and generate sustainable and balanced growth," the report added.

The fund will review Pakistan's performance quarterly over 39 months, phasing release of the additional aid over time.

Pakistan is currently facing a Balance of Payment crisis and is looking to bridge a financial gap of at least 12 billion dollars.

The country has already received financial support from some of its allies.

The United Arab Emirates has offered a three billion dollar aid to Islamabad. While Saudi Arabia has promised six billion dollars and struck a 12-month deal for a cash lifeline with Islamabad.

Pakistan's all-weather-friend China too has come to the rescue of the Imran Khan government by financing infrastructure projects.

After coming to power Imran Khan launched a series of austerity measures to check the country's battered economy. This ranged from auctioning government-owned-luxury cars to reducing bureaucratic spending.