Islamabad: Time is running out for Pakistan to convince the International Monetary Fund to release the remaining USD 2.2 billion from its bailout programme before June 30 otherwise the country might face default, according to Dawn citing Moody's latest report.

Moody, in its latest report, expressed fear that Pakistan might face default in case of failure of the IMF programme.

Pakistan's Finance Minister Ishaq Dar did hold several sessions but has failed to convince the top IMF officials for the completion of the 9th review essential for securing a staff-level agreement for the release of the USD 1.1 billion tranche.

Only two weeks are left for Pakistan to reach a deal with IMF or face failure that would have serious consequences for the economy. The bailout package will expire on June 30.

The rating agency said that without an IMF programme, Pakistan could default, given its very weak reserves. The State Bank of Pakistan's foreign exchange holdings are below USD 4 billion. Along with the Moody's, other rating agencies have been warning that Pakistan could default in case IMF refused to complete the bailout package, reported Dawn.

Both the prime minister and finance minister announced many times that Pakistan has met all pre-conditions for unlocking the IMF loan. Analysts and researchers also believe that Pakistan met the required conditions of the IMF.

As the IMF loan is still locked, Dar came up with plan B to work immediately next month on rescheduling the bilateral external debt of over USD 27 billion.

While addressing the post-budget news conference on June 10, Dar ruled out any talks about restructuring external debt with multilateral agencies or Paris Club as it is "not a dignified thing to do." He said that Pakistan will not bother multi-laterals, adding that "rescheduling Paris Club [loan] is not on our menu," as per the Dawn report.

Ishaq Dar expected little from the International Monetary Fund (IMF) beyond disbursements under the delayed ninth IMF review which would have released USD 1.1 billion instalments. He said, "There is no chance for the 10th review" meaning that the current IMF programme of USD 6.5 billion will conclude at around USD 5.1 billion without the remaining 10th and 11th reviews for USD 1.4 billion funds."