The talks, to continue through Feb. 9, are meant to clear the IMF's 9th review of its Extended Fund Facility, aimed at helping countries facing balance-of-payments crises.
The lender had set several conditions for resuming the
bailout, including a market-determined exchange rate for the
local currency and an easing of fuel subsidies.
Last week, Pakistan removed an artificial cap on the rupee,
resulting in it losing 14.73% in interbank trading during the
last three trading sessions.
The central bank said the rupee gained 0.65% against
dollar on Tuesday in inter-bank trading, but, according to the
exchange companies' association, lost 0.54% in the open market.
"We believe that the rupee's weakness still has further to run, particularly with Pakistan's balance-of-payments position likely to remain weak for several more months," Fitch Solutions said.
New measures also include taxation, shedding power
sector debt and hiking energy prices, with people already facing
24.5% inflation.
The central bank also raised interest rates this month
by 100 basis points to fight inflation.
The finance ministry, which raised fuel prices by 16% over the weekend ahead of the talks, said in its monthly report issued on Tuesday that fiscal consolidation was key to saving official reserves and exchange rate stability. (Reporting by Asif Shahzad in Islamabad and Ariba Shahid in Karachi; Editing by Miral Fahmy, Arun Koyyur and Nick Macfie)
