Pakistan’s economy grew faster than expected last quarter as funds from the International Monetary Fund and lower interest rates buoyed activity.

Pakistani officials say the executive board of the International Fund has approved a new $7 billion loan for the country.

The executive board of the International Monetary Fund (IMF) on September 27 approved a $7 billion funding package to Pakistan. The IMF also immediately disbursed about $1 billion from the extended fund facility (EFF) that it provisionally agreed with the country in July.

Pakistan's benchmark share index hit a life-time high in opening trade on Thursday, hours after the International Monetary Fund's board approved a long-awaited $7 billion bailout deal for the struggling economy.

Pakistan said Thursday it would have to go through "transitional pain" after the International Monetary Fund agreed to a new relief package of $7 billion to bolster its faltering economy.