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.”