WASHINGTON - The International Monetary Fund on Thursday pledged 450 million dollars in emergency loans to Pakistan to help the country cope with a massive flood disaster. The IMF is also in talks with Pakistan about handing over the next instalment in a loan programme that has been running since November 2008. IMF Managing Director Dominique Strauss-Kahn, after meeting with Pakistani Finance Minister Abdul Hafeez Shaikh, said the talks were progressing and that 1.7 billion dollars in loans could be made available later this year. The emergency aid must still be approved by the IMFs executive board but was likely to be handed out this month. The World Bank, the IMFs sister lender, agreed Wednesday to boost its own emergency aid funding for Pakistan to one billion dollars. The floods in Pakistan are first and foremost a human tragedy still affecting millions of people, Strauss-Kahn said in a statement. But this natural disaster will also have an important effect on the countrys economy as it has caused serious damage to infrastructure, severely impacted economic outlook and resulted in a worsening of the fiscal situation. Agencies add: The IMF and the World Bank have stepped up aid to flood-hit Pakistan to help the country cope with its worst-ever humanitarian disaster, officials said Thursday. IMF chief Dominique Strauss-Kahn said the fund will provide around 450 million dollars in immediate emergency financing to Pakistan to help manage the aftermath of devastating floods that have affected 18 million people. Pakistani and IMF officials have been holding talks in Washington for more than a week after Islamabad warned they would not be able to meet key IMF targets on inflation and budget deficit levels. Pakistan agreed to the terms in 2008 in return for an 11-billion-dollar stand-by loan, 7.3 billion dollars of which had already been pledged. Our dialogue with Pakistan on the current stand-by arrangement is progressing and the authorities have expressed their intention to implement measures for the completion of the fifth review of the program later this year, Strauss-Kahn said. Completion of the fifth review will allow the fund to disburse an additional 1.7 billion dollars, bringing total IMF disbursements (including emergency assistance) to 2.2 billion dollars in the second half of 2010, Strauss-Kahn said. He made the aid announcement after meeting with Pakistans Finance Minister Abdul Hafeez Shaikh. Pakistan remains committed to the reform efforts that will put public finances on a sustainable basis and lay the foundations for growth, Shaikh said. The International Monetary Fund will disburse funds during September, IMF Managing Director Dominique Strauss-Kahn said on Thursday. The IMF ... will be the first agency likely to disperse very rapidly money which is absolutely needed, he told reporters after a week of discussions with Pakistani officials. The most important thing is to keep the Pakistani economy on track. Talks with a delegation led by Pakistans Finance Minister Abdul Hafeez Shaikh on the terms of an $11 billion IMF loan programme left him satisfied with the countrys commitment to reforms, the IMF chief said. Under the 2008 IMF loan programme, Islamabad pledged to implement tax and energy sector reforms and give full autonomy to the State Bank of Pakistan. What is important is what was decided by the government to do to improve the economic situation, especially in the tax sector but in other fields also, said Strauss-Kahn. What I heard from the authorities that they really want to move on with the program, he said. Shaikh said Islamabad remained committed to loan terms, including fiscal authority and tax reforms. The World Bank said separately it would raise its flood-related support to one billion dollars from 900 million dollars. The money will come from the banks fund for the poorest countries and the loans are concessional and carry no interest payments. As the surging Indus River devastates Pakistan, the country needs the worlds support to meet urgent humanitarian needs: food, clean water, sanitation facilities, medical and nutritional supplies, and vaccines, bank president Robert Zoellick said. At the same time, Pakistans reconstruction and recovery also require long-term support. The World Bank is committed to helping the people of Pakistan during this time of need and has made one billion dollars available to finance immediate recovery needs and longer-term reconstruction, he said after talks with Shaikh.