IMF board likely to meet mid-May on Pakistan

WASHINGTON (April 24 2010): The International Monetary Fund's board likely will meet in mid-May to consider the next tranche of Pakistan's $11.3 billion loan, a source close to negotiations between IMF officials and Islamabad said on Friday.

Pakistani finance officials are in Washington this week for spring meetings of the IMF and are also talking to the World Bank and the Asian Development Bank over steps being taken to raise electricity tariffs and other taxes that are unpopular with the public and politically risky for the government. The source, who asked not to be named as the issue is sensitive, said talks with Pakistani officials would continue this weekend and the board meeting would likely be in mid-May to release the fifth instalment, worth about $1.2 billion.

He said no definite date had been set, but ruled out the meeting would be held on May 3, as announced by the Pakistani prime minister's office last week. "They are moving forward and things are going to be resolved very soon," the source said of current negotiations.