ISLAMABAD, June 14: The International Monetary Fund (IMF) has expressed its willingness to extend $1.5 billion to $2 billion assistance package another three years to help improve the economy of the country.

Sources told Dawn here on Saturday that although the government had decided not to seek any fresh loan programme from IMF, Islamabad was being offered to have another package similar to the Poverty Reduction Growth Facility.

Some officials in the ministry of finance believed that Pakistan needed to remain “fiscally responsible” and this could not be possible without the IMF’s strict vigilance. Therefore, they were of the view that a new IMF assistance programme, preferably on a reduced mark-up rate, was necessary to pursue prudent economic policies. They said that any IMF loan programme would also help improve the international credit rating of the country’s economy., adding that the IMF lending programme would also make it easier for the country to seek loans from other foreign banks and financial institutions both for improving balance of payment position and development purposes.

“The IMF loan programme has always proven to be a double- edged sword and as such has helped us to remain fiscally responsible”, said Dr Ishfaque Hasan Khan, economic advisor to the ministry of finance.

Dr Khan, who is also the director general of the Debt Coordination Office, said that once the ongoing PRGF programme was over in November 2004, the government would have to be “very very tough” to ensure the continuation of consistent and transparent policies.

But officials, who did not want any new loan programme, said that Pakistan would continue having annual consultations with the IMF.