PAKISTAN and the International Monetary Fund (IMF) reached a preliminary agreement for the release of $1.1 billion (£800 million) from a $3bn (£2.3bn) bailout following talks in Islamabad, the IMF said today.

Under the deal, Pakistan will receive the final tranche from the bailout that was approved by the IMF in July to save the nation from defaulting on its debt repayments.

An IMF statement said that it “has reached a staff-level agreement with the Pakistani authorities” and noted that approval by the IMF’s executive board “is considered a formality.”

The announcement came after talks between the IMF and the new government of Prime Minister Shehbaz Sharif concluded in Islamabad. 

Pakistan signed the latest short-term agreement last year to overcome one of the worst economic crises in its history that had raised fears that the South Asian nation could default on the payment of foreign debts. 

Mr Sharif was again elected the country’s premier this month following February 8 parliamentary elections which many critics have denounced as flawed.

The latest development came weeks after imprisoned former premier Imran Khan wrote a letter to the IMF, urging it to link any talks with Islamabad to an audit of the recent elections, which his Pakistan Tehreek-e-Insaf party says were rigged. 

Authorities have dismissed the accusation as baseless.