ISLAMABAD: The International Monetary Fund (IMF) and Pakistan are likely to begin policy-level talks about the resumption of a $6 billion loan program in Doha next week, reported a local newspaper on Monday, since the country’s new administration could not secure financial assistance from friendly nations.

Pakistan’s finance minister Miftah Ismail held meetings with IMF officials in Washington last month in which he requested them to extend the size and duration of the loan program.

He also agreed to reverse oil and gas subsidies for the resumption of the IMF program which was stalled after the country’s previous administration announced a relief package of about $1.7 billion in February.

“Subject to the government’s willingness to start withdrawing fuel subsidies from May 15, the two sides have tentatively planned to meet in Qatar for policy level discussions to revive the [loan] programme and extend its tenure and size to $8 billion,” The Express Tribune said while quoting an unnamed government functionary.

It said the talks were expected to begin on May 18.

“The development comes amid a delay in finalisation of new loan deals with Saudi Arabia, China and the United Arab Emirates,” the newspaper added.

The three countries previously provided significant financial assistance to Pakistan amid its mounting current account deficit and lowering foreign exchange reserves.

The newspaper reported the country’s present foreign reserves already included $4 billion from China, $3 billion from Saudi Arabia and $2.5 billion from the UAE.

It maintained the IMF deal was “not possible without first withdrawing the fuel subsidies,” though there was “deep division within the government” over the issue.

The Express Tribune noted the country required external financing “to avoid insolvency,” adding it needed the IMF deal since the government was planning to announce the next fiscal budget on June 10.