ISLAMABAD – Pakistan’s Policy talks with the IMF for the bailout packagehave reached a critical stage where both the sides are now penning down theconditions.

These conditions have to be met before the approval of the loan by the IMFboard and during the programme implementation period.

There is also difference of opinion on the extent of further currencydevaluation by June 2019, according to the sources. The IMF is asking for amassive devaluation, which if accepted could push the rupee far above Rs150to a dollar in coming months, they added.

The rupee traded at 133.89 to a dollar in the inter-bank market on Friday.Since December last year, Pakistan has let its currency weaken by 26.6%.Still, the IMF experts believe it is not enough, they added.

Since January, Pakistan has increased interest rate by 275 basis points to8.5%, which is the highest increase by any Asian country.