WASHINGTON, Nov 1: The International Monetary Fund said on Thursday it hopes to wrap up negotiations on a new poverty reduction loan for Pakistan soon.

“It is hoped that a financing package supporting the authorities programme is agreed soon and that the (poverty reduction loan) discussions can be wrapped up in the near future,” IMF spokesman Tom Dawson told a news briefing.

“Good progress is being made,” he said.

Dawson said it was premature to speculate on the size of the loan. Earlier this week, the US State Department said it would support a $2 billion IMF loan for Pakistan.

Pakistan was unlikely to secure that amount of funding from the IMF alone but that World Bank and other contries’ support was likely to be added, possibly taking the broader financing package to an amount roughly that size.

Pakistan’s need for help has increased recently as the United States’ war on terrorism dampened economic prospects for the entire region. —Reuters