WASHINGTON Pakistans third loan instalment of $1.13 billion from the International Monetary Fund was approved, with the lending agency waiving two performance criteria for the period ended in March. Against a background of adverse security developments and a rapidly changing political environment, economic conditions have improved, IMF Deputy Managing Director Murilo Portugal said in a statement released from Washington late Friday. Pakistan had asked for a waiver on some of its targets, including its quarterly budget deficit. The IMF approved the requests, and also agreed to combine the remaining three disbursements into two, while keeping the total loan package at about $10.66 billion. Including the latest disbursement, Pakistan has drawn about $7.27 billion. The board said it would grant waivers for overruns on the budget deficit and on net the government borrowing limits from the State Bank of Pakistan. The IMF said Pakistan missed those targets in part due to a temporary factor a delay in the disbursement of foreign financing. It agreed to Pakistans request to increase the end-June 2010 budget ceiling by 0.15 percent of gross domestic product to allow space for urgent security outlay and avoid spending cuts. The floor for net foreign assets of the State Bank of Pakistan was raised by $300 million. The IMF said Pakistans economy remained highly vulnerable, and listed worry spots ranging from persistent inflation to security-related spending pressures. Pakistan has come under U.S. pressure to send troops into the North Waziristan following a failed bombing in New York claimed by the Taliban Movement of Pakistan.