The International Monetary Fund (IMF) has approved a $7 billion loan to cash-strapped Pakistan to revive its flagging economy.

The executive board of the IMF approved a 37-month extended arrangement under the Extended Fund Facility (EFF) for Pakistan.

In a statement issued on Thursday, the fund said the immediate disbursement would be about $1 billion.

The Prime Minister’s office also revealed that the first tranche of nearly $1.1 billion would be released immediately.

Prime Minister Shehbaz Sharif welcomed the development in a statement issued earlier on Thursday.

 He said: “After achieving economic stability, we will continue to work hard to meet our targets for economic growth.”

“If the same hard work continues, God willing, this will be Pakistan’s last IMF programme.”

Pakistan has approached the Bretton Wood institution 24 times since 1958 as successive governments failed to break the cycle of economic mismanagement and reliance on external aid.

Sharif’s government started the groundwork soon after the February elections and reached a staff-level agreement with the IMF in July.

The government is facing criticism after the imposition of heavy taxes on the salaried class and increasing electricity prices.

The tough and unpopular decisions taken in line with the IMF’s preconditions have substantially eroded public support for the government.

Critics, especially from the opposition led by former prime minister Imran Khan, blame Sharif for making the economic situation worse.

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