WASHINGTON, Oct 24: The International Monetary Fund will consider a rescue package for Pakistan on Nov 7 during a meeting of its board of governors in Washington.

Diplomatic sources in the US capital say the Fund has agreed in principle to help Pakistan avoid defaulting on its foreign debt repayments but a final decision can only be taken by its governors.

The IMF has estimated that Pakistan has unmet funding needs of around $4 billion and needs some extra cash to meet its other urgent requirements. The Fund is willing to provide up to $6 billion.

On Thursday, Finance Adviser Shaukat Tareen told reporters that Pakistan needed up to $4.5 billion within the next 15 to 30 days to avoid a default.

If IMF’s board of governors approves a rescue package for Pakistan on Nov 7, the country can meet its balance of payment requirements on time but this may not be enough to jumpstart its ailing economy.

Pakistani officials believe that IMF’s endorsement will not only bring the much-needed cash advance but will also encourage other donors to come forward and help.

But a credit-rating company, Standard & Poor’s, warned on Thursday that the IMF bailout package might not be enough to save Pakistan from further credit-rating cuts.

“It doesn’t mean they are out of the woods,” said Agost Benard, a Singapore-based associate director at S&P, which cut Pakistan’s debt rating on Oct 6 to CCC+, seven levels below investment grade. “It’s just the first step in the right direction, or the only direction Pakistan has to go now.”