Pakistan, International Monetary Fund reach initial agreement on $5.3 billion bailout

Pakistan and the International Monetary Fund have reached an initial agreement on a bailout of at least $5.3 billion.

Pakistani Finance Minister Muhammad Ishaq Dar and IMF mission chief Jeffrey Franks announced the agreement at a press conference Thursday.

The deal has been approved by the Pakistani government and IMF staffers in the country. It still needs to be approved by IMF officials in Washington and the institution's board of directors.

The $5.3 billion loan will be disbursed over a three year period and will have an interest rate of roughly three percent.

It will be repaid over 10 years after an initial grace period of four years.