The decision was made after a crucial meeting between IMF and Pakistani official this week in Dubai.
"After constructive discussions, the mission and the Pakistani authorities have reached staff level agreement on the completion of the tenth review under the EFF (Extended Fund Facility) arrangement," IMF said in a statement.
The disbursement of the agreed amount will be made after requirement by the IMF board approval but it will be just a formality after the agreement reached with Pakistan.
The loan helped Pakistan in 2013 to avoid a default when foreign exchange reserves had depleted to a dangerous level.
The privatisation of 68 state-owned companies, which include loss-making enterprises like Pakistan International Airlines, is a crucial part of the IMF deal.