WASHINGTON, Oct 20: Pakistan is seeking three times more than its $2 billion quota from the International Monetary Fund to avoid default, US and diplomatic sources told Dawn.

A stand-by arrangement, allows the IMF to give three-time the quota allocated to a country.

Pakistani officials are meeting IMF representatives in Dubai on Tuesday to formally ask for a balance of payments support program.

Financial Adviser Shaukat Tarin warned earlier this week that Pakistan was running out of time, and action was need in the next 30 days.

Pakistan needs up to $3-4 billion urgently to stabilise the economy, although the total financing gap for the balance of payments was projected at around $7 billion for the fiscal year ending June 30, 2009.

The country also faces an unusually high inflation rate – 25 to 35 percent – while heavy government borrowing from the central bank to fund the budget has created a liquidity crunch that requires aggressive action.

Asked if Pakistan was seeking full quota from the IMF a Pakistani official involved in negotiations with the world body said: “Our quota – from $1.5 billion to $2 billion – is nothing. We need much more.”