ISLAMABAD, Oct 6: A high-level delegation is leaving for Washington on Sunday to negotiate a medium-term Poverty Reduction Growth Facility (PRGF) with the World Bank and IMF.

Finance Minister Shaukat Aziz left here for Karachi on Saturday to fly to Washington with State Bank Governor Dr Ishrat Hussain and Moeen Afzal, secretary-general of the finance ministry.

“The government is hoping to have a fairly good financial joint package from the World Bank and the IMF on the basis of successfully completing 10-month Standby Arrangement,” Finance Ministry spokesman Dr Waqar said.

Dr Waqar told Dawn that the size of the PRGF could not be determined at this stage as it was yet to be discussed. The ministry had initially worked out $2 to $2.5 billion facility.

The finance minister would stay in Washington for six days where he would also hold separate meetings with senior officials of the US State and Treasury Departments.

Sources said that ever since Pakistan decided to support the US in its war on terrorism, Islamabad had been given to understand that a bigger package amounting to $6 to $7 billion could be offered jointly by the World Bank, IMF, Asian Development Bank and the US. Also, sources said, the US government could consider writing off Pakistan’s $3 billion debt.

Meanwhile, the ministry is seeking another Structural Adjustment Credit, to be called SAC-2, from the World Bank. “Like the SAC-1, SAC-2 is expected to be around $350 million,” the spokesman said.

In reply to a question, he said SAC-2 was aimed at improving Pakistan’s financial management, increasing productivity of the private sector and making available more resources for social sectors.

The World Bank had earlier disbursed $350 million highly concessional SAC-1 for improving Pakistan’s balance-of-payments position. “That (SAC-1) was the first-ever big soft loan approved by the World Bank since the present government came to power in October 1999,” he said, adding the SAC-2 was also likely to be secured on highly concessional terms.