ISLAMABAD  - Pakistan has failed to satisfy the International Monetary Fund (IMF) on the fourth economic review under $6.64 billion extended fund facility as talks still continued that were expected to conclude on August 18.

Pakistan and IMF are holding talks for the fourth economic review from last one month, as it started from August 6 in Dubai but without any success for Islamabad. The talks were scheduled from August 6 to August 18 in Dubai for the fifth tranche worth of $550 million. However, Pakistan did not satisfy the Fund so far, which has extended the talks.

"Talks are still continuing through video link, which will end shortly", said Rana Asad Amin, advisor and spokesperson of the Finance Ministry. However, he did not share the reasons behind extraordinary delay in the talks.

Sources aware of the deliberations informed that Pakistan is not ready to accept the Fund's demand of increasing power tariff immediately, which is conditional for receiving fifth tranche worth of $550 million due to ongoing political crisis in the country. "How can the government increase power tariff when thousands of people are protesting in federal capital from last 20 days", said an official of the Finance Ministry wishing not to be named. He added that it would be difficult for the government to approve the IMF's demand at present due to the political uncertainty prevailing in the country.

Sources were of the view that Pakistan was expecting to receive the fifth tranche by the end of current month of September but now it seemed difficult to materialise.

Pakistan had already received four tranches worth of $2.2 billion under EFF during the previous financial year 2013-14.

Earlier, the IMF had issued a brief statement on August 18 stating, an International Monetary Fund (IMF) team led by Jeffrey Franks visited Dubai from August 6 to August 18, 2014, to conduct discussions on the fourth review of Pakistan's IMF-supported programme under the Extended Fund Facility (EFF).

"The meetings and discussions held with Finance Minister Senator Ishaq Dar and Central Bank Governor Ashraf Wathra have been useful. The government of Pakistan's reform programme was broadly on track through end-June. The mission made excellent progress toward agreement on key policy issues going forward. Discussions will be continuing in the coming days via videoconference from Washington, D.C., with the aim of securing a timely completion of the fourth review", the IMF statement said.

"The IMF is encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving investment and growth. Economic indicators are generally improving, with growth continuing to gain momentum, inflation on a downward trajectory and credit to the private sector rebounding sharply. GDP growth is now expected to rise by 4.3 percent in fiscal year 2014/15 (to June 30), compared to a provisional estimate of 4.1 percent in FY2013/14", said a brief statement issued by the Fund.