WASHINGTON / ISLAMABAD: The International Monetary Fund (IMF) has agreed to increase the size of its $6 billion loan programme by $2bn and extend it for another year to prop up Pakistan’s balance of payments position and foreign exchange reserves.

Finance Minister Miftah Ismail said on Sunday that Pakistan had asked the IMF to enhance its bailout package from the remaining $3bn to $5bn.

Addressing a news conference at the Pakistan Embassy in Washington, the minister said that the IMF will send a staff-level delegation to Pakistan for talks on this request. Technical talks on Pakistan’s proposal are expected to begin from Tuesday.

“We hope that the staff-level agreement on the enhanced programme will be concluded soon,” Mr Ismail said. However, he could not say if the next tranche of about $1bn would reach Pakistan before the next budget.

The decision, however, is subject to a complete reversal of recently imposed subsidies and other measures for the upcoming budget.