The federal government has decided not to extend the current bailout prgramme with the International Monetary Fund when its duration ends on June 30, Aaj News reported on Thursday.

In a major decision taken on Thursday, government sources said the ongoing programme, which still has its last tranche pending, will be left incomplete.

The government has instead started preparations to negotiate a new IMF programme after the next fiscal year’s budget is announced in a few days.

Finance Ministry’s Secretary Tariq Bajwa has started working to prepare for negotiations and the government hopes to get the deal done in August.

THe new bailout programme will reportedly be over three years long in duration although its size is not yet estimated.

Sources said that Pakistan will be in ‘dire’ need of the new programme as the new fiscal year begins. The country will have to repay loans worth $24 billion of which around $11 billion will have to be paid by December.

Even though Finance Minister Ishaq Dar adopted an aggressive posture as soon as he took up the ministry’s reigns after returning from self-imposed exile. However, despite lengthy negotiations and even a visit by the IMF team to Islamabad earlier this year, the last tranch of the ongoing program has failed to materialise.

The government has expressed surprise at the Fund’s attitude this year, as it has asked for stricter fiscal discipline at home as well as guarantees that help will arrive from friendly countries.