ISLAMABAD: The International Monetary Fund confirmed on Sunday that it had reached a staff-level agreement with Pakistan over a $6 billion bailout package backed by a series of reforms to cut yawning deficits and improve growth.

The programme would aim to cut Pakistan's debt through tax measures  to improve revenue collection as well as reforms to its creaking energy sector, with a "market-determined exchange rate" to help the functioning of the finance sector, the IMF said in a statement.