ISLAMABAD: Pakistan has decided to take a new loan program of the International Monetary Fund (IMF), private news channel reported.

According to details, the newly-elected PML-N-led government has decided to avail a fresh IMF loan program, and the Ministry of Finance has initiated actions on the directives of the premier.

Pakistan is likely to seek $6 to 8 billion loan program from the international lender and for this immediate contact will be made with the IMF for negotiations. The sources further said the conditions of the International Monetary Fund would be stricter this time.

The finance ministry said managing increasing debts and the repayment of existing loans pose a significant challenge for Pakistan.

They further said the finance ministry has emphasized the need to stay in the International Monetary Fund program until there is an increase in revenue, local resources are generated, and it is essential to maintain a balance in payments and foreign exchange reserves.

The government will have to make tough decisions regarding increases in electricity and gas prices, and the market exchange rate is crucial to cope with external financial challenges.

The sources said completing the existing IMF loan program is also necessary. The short-term IMF loan program is expected to end in April, and negotiations for the second review under the short-term program are still pending.