According to the statement said by an official of the Finance Ministry, the International Monetary Fund (IMF), likely to approve $1.2 billion loan for Pakistan during a board meeting to be held on May 3, wants Islamabad to peg the fiscal deficit at 5.1 per cent of the GDP.

Further, the regional head of the IMF for South Asia, during his meeting with Prime Minister Yousuf Raza Gilani on April 13 in Washington, guaranteed him that the IMF Board in its meeting would grant the release of the fifth trance for the country under a standby arrangement of $11.3 billion.

Moreover, talking to media, he said, “The IMF has also proposed that Islamabad can request for a new loan as early as May.”

Meanwhile, the finance ministry official seems confident for the successful culmination of the present IMF programme by the end of this year.

He said, “The prime minister appraised the IMF regional head about the government’s efforts to broaden the tax base and for keeping the budget deficit at around 5.1 per cent.”

In addition, the official also added that the PM requested the top officials of the fund to judge Pakistan’s ground realities and problems before suggesting more reform measures.