Pakistan-IMF deal may announced tomorrow.

ISLAMABAD -- The government and the International Monetary Fund (IMF) are likely to announce a staff-level agreement tomorrow (Friday) as the former has accepted most of the global lender's demands - earlier termed harsh - that will lead to the unfolding of an inflationary budget loaded with taxes on June 11.

Both sides will hold the last round of talks today (Thursday) in which the remaining issues of the fiscal deficit and primary balance will be finalised, sources in the Ministry of Finance told.

They added that the country did not have any other option but to concede to the IMF's demands to remain afloat.

Pakistan and the IMF have started exchanging the proposed draft of the Memorandum of Economic and Financial Policies that will become the base for the three-year programme.

It is expected that the loan size will be equal to about 225% of Pakistan's quota or $6.5 billion.

The country already owes $5.8 billion to the IMF on account of previous loans. If all the issues are resolved by Thursday evening, Pakistan and the IMF will sign their 22nd programme on Friday.

'Unlike in the past, the IMF should finalise the loan programme keeping in mind the ground realities of Pakistan including the Pakistan Tehreek-e-Insaf's [PTI] representation in both houses of the parliament,' said Senator Shibli Faraz, the leader of the house in the Senate.

Senator Faraz met IMF Mission Chief Ernesto Rigo along with three other legislators at the Parliament House.

They told the IMF official that the conditions set by the global lender for the new bailout package required new legislation and the PTI was not in a comfortable position to have these bills...