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In a televised comment, defense lawyer Latif Khosa said the Lahore High Court granted bail to Ali after hearing arguments from both sides.
He said they had started the paperwork for the release of Ali, who has been the focus of Pakistani media's attention since authorities nabbed her at the VIP lounge of Islamabad's airport. Under Pakistani laws, no one can carry over $10,000 on a flight, but authorities found $506,800 tucked into her luggage.
It was unclear when the model would be freed. Ali is being held at a prison in the garrison city of Rawalpindi.
Usually, lawyers take one to two days to complete paperwork to get their clients released.
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