Washington: An International Monetary Fund (IMF) team said it would call for a $ 114- million credit for Pakistan after reviewing the country's economic progress.

The International Monetary Fund staff team led by Klaus Enders, Middle East division chief, said on August 21 it would make the recommendation to IMF managing director Horst Koehler.

"On the basis of Pakistan's economic performance over recent months, and the government's confirmation of staying the course on economic reform in the period ahead, the mission will propose to the managing director that he recommend completion of the review by the executive board," the mission said in a statement.

If the IMF completes the review, it is effectively approving of the country's economic policies. Completion of the review unlocks a disbursement of about $ 114 million to Pakistan.

The payment is the third installment from a three-year arrangement for Pakistan totaling about $ 1.3 billion, agreed in December last year.

The IMF team said the Pakistani authorities had achieved "impressive results" in macroeconomic stabilisation.

"The strength of the rupee and strong capital inflows indicate confidence in the outlook for Pakistan's economy," the team statement said.

Economic output was expected to grow by 4.5 percent in the current fiscal year, which ends June 30, 2003, it said.

The IMF mission said it had stressed the importance of meeting revenue targets to reduce the public debt burden.