ISLAMABAD - International Monetary Fund is likely to accord approval, in principle, to Pakistan's economic stabilization package, paving the way for an earlier release of loans direly required for economic stability, says Shaukat Tarin. Advisor to Prime Minister on Finance, Shaukat Tarin, revealed to TheNation that a general impression coming from Abu Dhabi, the negotiating ground between Pakistan and the Fund, was that the "IMF was liking our programme and in principle would likely to endorse it, as the plan is robust enough".   On a question, he said the World Bank was still committed to giving US $ 1.4 billion and reports regarding the Fund objections to $ 300 million budgetary support loan had nothing to do with the new commitments. He said the loan of $ 300 million was discussed in March 2008 and then the Fund raised certain objections. During the WB Vice President for South Asia, Isabel Guerrero's visit to Islamabad in August, the Bank officially refused that it was not discussing any such programme with the Pakistani authorities.   On the other hand, the official spokesman of the Bank while commenting on the reports of halting $ 300 million aid said, "All inferences drawn from an internal bank process are completely false". Pakistan has prepared a multi-pronged Economic Stabilization Plan, based on a set of hard decisions. The major thrust of the package is to completely phase out fuel and electricity subsidies by June 2009 to reduce fiscal deficit, overcome balance of payments problems by attracting dollars from various means, and a prudent interest rate to control inflation. Both, the Pakistani authorities and the Fund, are pondering over the plan and its endorsement would pave the way for issuance of the Letter of Comfort by the Fund. On the basis of the LOC the multilateral donors would release loans to Pakistan. A Finance Ministry release says that Shaukat Tarin held a meeting with Simon McDonald, Adviser to British Prime Minister on Foreign and Defense Policy. Shaukat Tarin thanked his British counterpart for UK's DFID's support to Pakistan's development projects, adding that Pakistan  would soon attain macroeconomic stabilization while providing economic safety net to the poor sections through Benazir Income Support Programme (BISP). The programme is designed to provide a social package comprising health education and insurance cover to the needy ones. An integrated energy production plan is also in the offing to develop business, commercial and industrial sector.   Shaukat Tarin briefed the visiting British Advisor on matters relating to Pakistan's ongoing economic development issues, interaction with world communities on matters of multilateral economic interest and Pakistan's recent overall policy initiatives for peace and development in the region. Both the sides also discussed the existing politico-economic scene in the South Asian region and Britain's commitment to improve the overall social conditions focusing world peace. The Advisor said that the existing banking system in Pakistan that witnessed consumer-based growth, in the short-term, supported Pakistan's economy, but subsequent rise in the international market petroleum prices led to downslide in development. Both the sides agreed that the recent downslide in the international market oil prices would likely ease the existing economic pressures. Monitoring Desk adds: Advisor to Prime Minister on Finance Shakuat Tarin has turned down traders' demand for flexibility in monetary system and an immediate cut in interest rate. The traders had demanded the advisor to announce flexibility in monetary policy and a decrease of two to four percent in interest rate. He said that a continuous hike was being witnessed in core inflation and it had gone beyond 17 percent. He said that decision in this context could only be taken after four months of core inflation target achievement.