The International Monetary Fund executive board approved on Friday a fresh $1.4 billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion program, freeing about $1 billion in cash.

Why has the IMF given Pakistan money? Is it a loan or a grant? How is Pakistan's economy doing now, and why does the country need frequent grants and loans from other nations and institutions? We explain.

The Pakistan Stock Exchange (PSX) staged a strong comeback on Monday, driven by a “convergence of positive developments” including a ceasefire agreement between India and Pakistan, as well as the International Monetary Fund’s (IMF) approval of crucial funding. The benchmark KSE-100 Index surged over 10,000 points during the intra-day trading.