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.

On May 9, the IMF Executive Board approved the immediate release of approximately $1 billion to Pakistan under the Extended Fund Facility (EFF), bringing the overall disbursement to $2.1 billion.