KARACHI (Agencies) - Pakistan needed $13.4 billion and $12.2 billion as gross external financing requirement for the 2008/09 and 2009/10 (July-June) fiscal years respectively, a senior International Monetary Fund (IMF) official said on Tuesday. The IMF will provide $4.7 billion of that total, Juan Carlos di Tata, senior adviser in the IMF's Middle East and Central Asia Department, told reporters. The gross external financing requirement for the 2009/10 fiscal year is estimated at $12.2 billion, Tata said. "These amounts that I mentioned are needed to cover the external current account deficit for both fiscal years, and the maturing short-term debt and mobilisation of medium- and long-term debt," Tata told reporters over a conference call. The package means Pakistan will be able to cover an international sovereign bond maturing in February. The IMF said it projected foreign exchange reserves to be $8.591 billion this fiscal year and $11.291 billion next year. Reserves were $6.64 billion in the week that ended on Nov. 15. Tata said the gross external financing was a "critical part of the programme" and the financing requirement, not including the IMF's $4.7 billion, was about $8.7 billion. The requirement will be covered by foreign direct investment of about $4.5 billion and also medium- and long-term borrowing from other multilateral and regional institutions such as the World Bank, Asian Development Bank and Islamic Development Bank and some financing from bilateral creditors for projects. The second tranche will be made available after the completion of the first review under the programme which is expected to be completed in mid-March of 2009. "This programme also has some quarterly quantitative targets on several variables including, for instance, the budget deficit, budgetary borrowing from the State Bank of Pakistan, international reserves and the domestic assets of the State Bank of Pakistan," Tata said. He said the second disbursement would be made available if quarterly targets are met, and also after the review of some benchmarks on structural issues that are included in the programme. He did not give target details. The fund has also asked for an end to central bank financing of the government from Nov 1. Tata said in order to eliminate borrowing, the interest rates set at Treasury bill auctions would have to be attractive. "The interest rates will have to be sufficiently attractive for commercial banks to purchase enough Treasury bills so that the domestic requirement of the government is covered through commercial bank sources," he added. He further said the target of zero government borrowing from the central bank could also be achieved by using non-banking sources such as Pakistan Investment Bonds and National Saving Schemes.