SINGAPORE (Reuters) Pakistan is unlikely to enter another lending programme with the International Monetary Fund, but a final decision will be taken towards the end of the year, Finance Minister Shaukat Tarin said on Thursday. Pakistans current IMF programme ends in November, its economy is struggling and it is battling militants in the northwest. I think we are moving in the right direction, Tarin told Reuters in an interview in Singapore. After we are through with the IMF programme, we dont need another programme. However, a final decision will be taken closer to the end of the year, he said. The IMF bailed out Pakistan in November 2008 to avert a balance of payments crisis and in July increased the loan to $11.3 billion from an initial $7.6 billion. Tarin said Pakistans foreign exchange reserves will likely exceed $20 billion by the end of the year. We probably could be sitting on $20 billion plus of reserves by the end of December. Tarin, a former Citibank executive, said he expects aid from friendly countries, planned US dollar bond sales and potential inflows from the governments privatisation programme will help improve the countrys financial health. Non-deal roadshows will happen in March and hopefully in the last quarter of this fiscal year, we should be able to go into the (bond) market for $500 million to a billion, he said. He said the government could issue $500 million worth of dollar bonds and a similar amount in sukuk, or Islamic bonds. Pakistan has not tapped the international bond market since 2007. Tarin acknowledged that there were delays in aid from bilateral donors, but said he expects a further $1.1 billion in inflows by the end of the fiscal year in June. Last year, donors including the United States and Japan pledged to give Pakistan $5.7 billion in two years. Tarin said he expects the fiscal deficit to be probably 5.3 percent of GDP or less in the current fiscal year, compared with the target of 4.9 percent. He said the economy could grow by more than 4 percent in the next financial year after expected GDP growth of 3.4 percent in the current year to end-June. Inflation could hit 11 percent in the current fiscal year, but the government expects it to ease to 6-7 percent in the next financial year, which could create room for lower interest rates, Tarin said. On Saturday Pakistans central bank kept its key policy rate unchanged at 12.5 percent for February and March. Tarin said Pakistans financial problems stemmed from reliance on external flows, cheap credit and consumption-led growth. What we have to learn is we have to improve our own resources, and frankly live within our own resources, even if that means that growth will be slow to increase. We are moving in the right direction, but it is green shoots, early days.