ISLAMABAD - Showing concerns over countrys power reforms, the International Monetary Fund (IMF) has asked Pakistan to further increase the power tariff to reduce the power subsidy otherwise budget deficit would get out of control, it has learnt on Thursday. According to the official sources, IMF in recent talks has shown serious concerns over the pace of power reforms initiated by the government. Sources further told that Pakistan has presented report regarding power reforms as prepared by the Cabinet Committee on power sector, as report suggested increasing the power tariff by 12 to 14 per cent during the ongoing fiscal year 2011-2012. However, sources said, IMF team was not satisfied with the progress in this regard and asked the government to expedite the process of power reforms. They (IMF team) were of the view that Pakistan should increase power tariff urgently, sources added. On the other hand, sources said that according to the IMF officials, Pakistan would once again depend on banking borrowing that would increase the budget deficit, if it does not enhance the power tariff. Budget deficit has recorded at 1.1 per cent of the GDP during the first quarter (July-September) of the ongoing financial year 2011-12. Pakistan and IMF held discussions under Article IV from November 9 to 17 in Dubai. It might be mentioned here that Islamabad was seeking Letter of Assessment from fund that was essential before starting negotiations with World Bank (WB) and Asian Development Bank (ADB) for $2 billion loan for power sector reforms and to resolve the issue of circular debt. According to the officials, Pakistan might struggle to get Letter of Assessment after the IMFs concerns over the power sector reforms. Sources further said that IMF has shown satisfaction over the foreign exchange reserves of the country. However IMF officials believed that Pakistan might face tough time in next year 2012 after the repayment of $1.2 billion to IMF.