Pakistan is in informal discussions with the International Monetary Fund and other bodies over a $10bn-$15bn international support package designed to stabilise its economy and avoid a balance of payments crisis.

A little over half the total would come in the form of an IMF loan. The balance would be provided by the World Bank, the Asian Development Bank and bilateral donors, potentially including Saudi Arabia. Pakistan is also seeking funds from China.

The scale of support under consideration reflects international anxiety that Pakistan, regarded as a vital country in the “war on terror”, is at risk of being destabilised by the global financial crisis. On Monday a senior Pakistani government official told the Financial Times the country was considering an IMF loan that would disburse funds over the next two years to bolster investor confidence shaken in part by falling foreign currency reserves.

“We are basically seeking help for around seven quarters including the one which began this month,” said the official.

Pakistan has still not yet made a formal request for IMF support, amid reservations among some senior political figures that it would be a blow to national pride. Reports of discussions with the IMF on Monday helped the Pakistani rupee gain some of its lost ground, gaining about 2.7 per cent since Friday.

Pakistan would be required to accept an IMF programme as a condition for multilateral financial support. International officials indicated the IMF would not impose extensive new conditions, but would essentially bless the reform programme prepared by Pakistan’s economic team. However, the IMF would require changes in monetary policy.

Shaukat Tarin, the top economic adviser to the prime minister, has proposed cutting the budget deficit from over 7 per cent of gross domestic product to a range of 4 to 4.5 per cent.

Pakistan’s government has already slashed domestic subsidies on fuel and plans to stop borrowing from its central bank. It had intended to raise foreign exchange by selling stakes in two banks and a gas project, but these plans have been jeopardised by the financial crisis.

The IMF puts Pakistan’s fin­ancing gap at $3bn-$4bn a year for the next two years. Officials believe any rescue package should provide additional funds to build Pakistan’s reserves, enough to pay for less than six weeks of imports.