ISLAMABAD: Pakistan is looking to clinch staff-level agreement on an International Monetary Fund bailout of more than $ 6 billion this month after addressing all of lender’s requirements in its annual budget, junior Finance Minister told Reuters.

“We hope to culminate this (IMF) process in next three to four weeks,” Minister of State for Finance, Revenue and Power Ali Pervaiz Malik said, with aim of thrashing out staff-level agreement before IMF board recess. “I think it will be north of $ 6 billion,” he said of size of package, though he added at this point IMF’s validation was primary focus. IMF did not respond immediately to request for comment.

Pakistan has set tax revenue target of 13 trillion rupees ($47bn) for fiscal year that began on July 1, near-40 percentc jump from prior year and sharp drop in its fiscal deficit to 5.9 percent of gross domestic product from 7.4 percent previous year. Malik said point of pushing out tough and unpopular budget was to use it stepping stone for an IMF programme, adding lender was satisfied with revenue measures taken, based on their talks. “There are no major issues left to address, now that all major prior actions have been met, budget being one of them,” Malik said. While budget may win approval from IMF, it could fuel public anger, according to analysts.

“Obviously they (budget reforms) are burdensome for local economy but IMF programme is all about stabilisation,” Malik said. Sakib Sherani, an economist who heads private firm Macro Economic Insights said quick deal with IMF was needed to avoid pressure on Pakistan’s foreign exchange reserves and currency given country’s maturing debt repayments and effects of unwinding of capital and import controls that were applied earlier.