No deal as IMF leaves crisis-hit Pakistan

An IMF team left Pakistan after crisis talks with the government failed to deliver a deal on financial aid that would help the South Asian country avert economic collapse.

After months of deadlock, the International Monetary Fund delegation arrived last week for last-ditch negotiations with a government fearing the political consequences of enforcing bailout conditions in an election year.

Finance Minister Ishaq Dar addressed the nation after the IMF team left the country on Friday morning, saying talks had "concluded successfully" and that a draft memorandum on broadly agreed policies had been shared by the lender with the government.

He said petrol prices would rise by roughly four percent and additional taxes would be imposed, without giving further details.

Pakistan's economy is in dire straits, stricken by a balance-of-payments crisis as it attempts to service high levels of external debt amid political chaos and deteriorating security.

Inflation has rocketed, the rupee has plummeted and the country can no longer afford imports, causing a severe decline in industry.

"Considerable progress was made during the mission on policy measures to address domestic and external imbalances," the IMF said in a statement.

"Virtual discussions will continue in the coming days to finalise the implementation details of these policies."

Prime Minister Shehbaz Sharif previously called the conditions for the $1.2 billion loan instalment "beyond imagination".