This will be Pakistan's 13th IMF bailout. Pakistan has been a regular borrower from the IMF since the 1980s. The country has last received its IMF bailout of over six billion dollars in 2013
Sources have also stated that though no hikes have been agreed upon, there will be an increase in gas and electricity tariff which would result in more trouble for Pakistan's already-neglected middle class.
Pakistan is also planning to devalue its currency.
Imran's khan government has claimed that this will be Pakistan's last IMF bailout plan. Khan had earlier claimed that he would rather commit suicide than go to the IMF for a bailout.
Pakistan is currently facing a Balance of Payment crisis and is looking to bridge a financial gap of at least 12 billion dollars.
The country has already received financial support from some of its allies.
The United Arab Emirates has offered a three billion dollar aid to Islamabad. While Saudi Arabia has promised six billion dollars and struck a 12-month deal for a cash lifeline with Islamabad.
Pakistan's all-weather-friend China too has come to the rescue of the Imran Khan government by financing infrastructure projects.
After coming to power Imran Khan launched a series of austerity measures to check the country's battered economy. This ranged from auctioning government-owned-luxury cars to reducing bureaucratic spending.
The aid comes after the International Monetary Fund chief Christine Lagarde met Pakistan Prime Minister Imran Khan in Dubai on the sidelines of the World Government Sumit and assured him of IMF support.