Pakistani officials say the executive board of the International Fund has approved a new $7 billion loan for the country.

The International Monetary Fund’s board (IMF) on Wednesday approved a $7 billion Extended Fund Facility (EFF) for Pakistan, providing a critical boost to the country’s struggling economy.

Pakistan's benchmark share index hit a life-time high in opening trade on Thursday, hours after the International Monetary Fund's board approved a long-awaited $7 billion bailout deal for the struggling economy.

The International Monetary Fund (IMF) has approved a $7bn (£5.25bn) loan to cash-strapped Pakistan. The country is due to receive the first $1bn of the loan immediately, with the balance to be paid out over the next three years.

Pakistan said Thursday it would have to go through "transitional pain" after the International Monetary Fund agreed to a new relief package of $7 billion to bolster its faltering economy.

The head of the International Monetary Fund has praised Pakistan's economic reforms, crediting them for the approval of a new $7 billion loan program for the financially struggling nation. The remarks by IMF Managing Director Kristalina Georgieva were aired on Pakistani television channels Thursday.