Pakistan has agreed with most of the conditionalities of International Monetary Fund (IMF), and its executive board is expected to meet next week to take final decision to help Pakistan in paying foreign debts. Official sources said that IMF executive board would meet some time next week. There is a possibility that the board will meet on November 10. However, the IMF has, so far, given no schedule of the meeting on its website.

Under the standby facility, Pakistan has requested for a loan of $9 billion for the next two years. Sources said that the board would meet just a few days ahead of the scheduled meeting of the 'Friends of Pakistan' (FOP) in Abu Dhabi. Some circles were of the view that Pakistan would not get more than $7 billion. Pakistan needs over $4 billion for payment of its debts. The amount is also needed to improve the country's falling forex reserves.

The IMF wants Pakistan to stop providing foreign exchange by the State Bank in opening LCs at the time of oil import, and abolishing the intervention in currency market by the central bank. These two conditions were put by the IMF, and the government accepted these conditions, sources said.

Copyright Business Recorder, 2008