The Executive Board of the International Monetary Fund (IMF) announced an immediate disbursement of about US$1.1 billion, bringing total purchases for budget support under the arrangement to about US$3.9 billion.

The announcement came during the board's combined seventh and eighth reviews of the Extended Arrangement under the Extended Fund Facility (EFF) for Pakistan, the IMF said on Monday.

The IMF agreed to extend the programme by a year and increase the total funding by 720 million special drawing rights, or about $940 million as per the current exchange.

The funds will be a lifeline to the South Asian country suffering from devastating floods which have inflicted damage of at least $10 billion according to the country's planning minister.