Pakistan to address energy with IMF ISLAMABAD, June 19 (UPI) -- Pakistan said it would brief the International Monetary Fund on plans to address the energy crisis as part of a financial bailout package. Pakistan started talks Wednesday with IMF delegates on its request for a $5 billion bailout package. Pakistani newspaper Dawn reported the government was working to cut its fiscal deficit from 8.8 percent to 6.3 percent of gross domestic production for the next fiscal year. The government said it would discuss with the IMF how to address circular debt tied to the country's aging energy sector. Dawn reports the government plans to resolve the issue by August. The government's inability to pay its bills could exacerbate the situation during the warm summer months. Opposition lawmakers were quoted by Pakistan's Daily Times newspaper as saying Tuesday the country could face more economic problems if it backs out of an Iranian natural gas pipeline project. Iran said it would impose financial penalties on Islamabad because it was frustrated by the lack of progress over a pipeline proposed in the 1990s. Pakistani opposition leaders said the government needs to decide if it wants to "appease the United States and Saudi Arabia" or consider national interests first. Western governments oppose the natural gas pipeline because it would provide a source of economic support for Iran.