Skyrocketing food prices, a erosion of its foreign exchange reserves and political unrest have plagued Pakistan for more than a year, as the country saw fights breaking out over basic commodities. With Pakistan on the brink of collapse, a bailout by the International Monetary Fund seems to be its only way out apart from additional debt from China.
As its current agreement with the IMF comes to an end, Pakistan is looking for a $2.5 billion quick standby assistance from the organisation.
The short-term arrangement for Pakistan includes a $1.1 billion disbursement in 15 days, and two to three reviews of $500 million.
This is meant to help with a transition towards the new government which will be elected towards the end of the year.
Pakistan's attempts to become a part of a $6.7 billion IMF bailout plan haven't been successful for six months.
Moves to hike taxes and energy prices as well as budget tweaks, have also been unable to convince the IMF.