ISLAMABAD, July 24: The IMF will disburse the last two tranches worth $240 million in early November after which its $1.5 billion Poverty Reduction Growth Facility (PRGF) programme will come to an end in December 2004.

Official sources said here on Saturday that the IMF review mission is arriving here in August to review the performance of the Pakistan's economy during the last quarter (April-June) of 2003-04.

The purpose of the visit was to also hold consultations under Article IV and to offer any possible technical assistance to Pakistan.

However, Pakistan has officially communicated to the Fund's authorities that Islamabad did not require any fresh IMF programme. One of the reasons to refuse new assistance was to avoid IMF's harsh conditionalities.

Sources said that the IMF, which had previously hinted to offer PRGF type new three-year funding programme, was told that Pakistan would again prefer to approach the international capital markets to seek fresh financial assistance.

"We have decided, in principle, to float second time Euro bonds worth about $500 million but its timing is still to be determined", said an official of the ministry of finance.

Earlier, he said, IMF used to certify Pakistan's economy but the country now needed certification of the international capital markets.

And that was why it was decided to say good-bye to IMF and to enter into bond market that helped to issue $500 million five-year tenor Euro bond due in 2009, he said.

The first bond transaction, the official said, had attracted strong demand from high quality and diversified international investors and was four times oversubscribed resulting in the tightest possible pricing.