Pakistan's finance chief says the International Monetary Fund has agreed to provide a $7.6 billion loan to help the country stabilize its economy.

Top economic advisor Shaukat Tareen says the loan will prevent Pakistan from defaulting on its foreign debt.

Tareen told reporters in Karachi Saturday that Pakistan will formally apply for the loan next week, but that the IMF has agreed to the deal.

Tareen says Pakistan expects its first IMF loan disbursements this year.

Some information for this report was provided by AFP, AP and Reuters.