Pakistan gets final IMF okay for $3 bn bailout

The move allows for an immediate disbursement of about $1.2 billion

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Pakistan won final approval to borrow $3 billion from the International Monetary Fund, unlocking long-awaited lending that will help ease the nation's dire need for cash and rescue its economy.

The IMF executive board on Wednesday approved a nine-month stand-by arrangement to support the country's economic stabilization program, the Washington-based institution said in a statement. The move allows for an immediate disbursement of about $1.2 billion.

After months of delays, the South Asian country made an all-out effort to win an IMF deal to avert a sovereign default, steps that included raising interest rates in an emergency meeting and increasing taxes.

The IMF loan is boosting sentiment with the nation securing a credit score upgrade from Fitch Ratings and billions of dollars of additional financing from creditor nations.

The rupee rose 0.9% to 275 a dollar, according to Arif Habib Ltd. The nation's key stock index was little changed at 10:24 a.m. local time.