To meet the IMF's conditions for the loan, Prime Minister Shehbaz Sharif's government implemented a series of unpopular reforms, including record-high taxes and increased energy prices, a standard practice that has often triggered public backlash.

In a statement, the IMF said, "The new program aims to support the authorities' efforts to cement macroeconomic stability and create conditions for a stronger, more inclusive, and resilient growth."

This new deal marks Pakistan's 25th loan agreement with the IMF since gaining independence. The agreement arrives as the country faces loan repayments amounting to approximately $24 billion in the current fiscal year, which began on July 1.

The staff-level agreement must be approved by the IMF's executive board, a step that is typically a formality, before the funds can be released. However, no date has been set for the board vote.

Pakistan has frequently transitioned from one loan program to another amidst ongoing economic crises. The country completed its last IMF program, worth about $3 billion, in April. (ILKHA)