Pakistan’s benchmark share index rose 1.44% on Monday to hit a record high after the International Monetary Fund (IMF) and Pakistan reached a staff level agreement (SLA) for a $7 billion, 37-month loan program.

The deal caps negotiations that started in May after Islamabad completed a short-term, $3 billion program that helped stabilize the economy and avert a sovereign debt default, and set challenging revenue targets in its annual budget to help it win approval from the IMF.

The benchmark share index has almost doubled since Pakistan signed its last SLA for the $3 billion standby arrangement, and is up more than 10% since Pakistan presented its annual budget.

“$7 billion was pretty much expected. I think the markets will celebrate this SLA this week, because it is a short week with two days off,” said Adnan Sheikh, assistant vice president of research at Pak Kuwait Investment Company.

“The market has grown used to the IMF deal being a highly politicized, news event and the IMF asking Pakistan to do more. This time it was a silent agreement between the government and the IMF staff,” said Sheikh.

He added that the market is now expecting another interest rate cut by the central bank, despite a blip in inflation because of budget measures, and expects inflows of $2-3 billion during the month.

The IMF has said that the SLA agreement is subject to approval by its Executive Board and the timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.

This would include rollovers or disbursements on loans from Pakistan’s long-time allies Saudi Arabia, the United Arab Emirates and China.

The new bailout is aimed at cementing stability and inclusive growth in the crisis-plagued South Asian country, the IMF said in a statement.

Pakistan has been plagued by crippling boom-and-bust cycles for decades, leading to 22 IMF bailouts since 1958 and is currently the IMF’s fifth-largest debtor, owing $6.28 billion as of July 11, according to IMF data, opens new tab.