WASHINGTON - The International Monetary Fund (IMF) said on Monday that its board approved a nine-month extension of Pakistans stand-by loan to give authorities time to complete sales tax and other fiscal reforms. The extension runs to September 30, 2011. The extension will provide time to the Pakistani authorities to complete the reform of the General Sales Tax, implement measures to correct the course of fiscal policy, and amend the legislative framework for the financial sector, the Fund said in a statement. Pakistan has an $11 billion IMF stand-by loan to avert a balance of payments crisis. It received the fifth tranche of the loan, worth $1.13 billion, in May 2010. Meanwhile, analysts say Pakistans fiscal deficit may exceed 7 per cent of economic output, endangering its standing with international donors. The RGST, which is supposed to replace the current general sales tax, was originally scheduled for implementation in July, but has been delayed several times since. Even its latest implementation date, January 1, now seems unlikely. The delays will squeeze revenue while Pakistans spending surges in the aftermath of floods that have caused almost $10 billion worth in damage.