ISLAMABAD: In order to make payments to foreign debts, the federal government has decided to approach International Monetary Fund (IMF) till November, this year.

Reliable sources told that decision to contact IMF has been taken to control increasing deficit on the running transactions. Finance Minister Ishaq Dar has sought recommendations from FBR, State Bank and Controller General of Accounts, in this regard.

They informed that economic situation was deteriorating day by day as deficit target was set 4.5 for 2016-17 but the government has failed to overcome this deficit. IMF had been assured that present deficit would be slashed upto 4.5 but at the end of current financial year this ratio could be 5.5 to 6, they feared.

In order to satisfy the IMF, the finance ministry will try to portray it as 4.5 percent after completing its accounting work in August, they casted some doubts. Quoting the top officials of the finance ministry, the sources said Pakistan will contact IMF in November  .

The source told that development budget of the previous financial year was spent eyeing the preparation of upcoming general elections. Moreover,  FBR had also given huge tax exemption, which led to gap between revenue and expense. To bridge this gap, finance minister is holding meetings with senior officials, they informed.

Citing examples of other countries of the world, officials said that every country of the world was running on foreign debts. They added that economic situation of the country could only improve if the foreign debts are utilized properly.When contacted Secretary Finance Shahid Mehmood on telephone. He did not pick the phone.