ISLAMABAD. Nov 10: After a month in power. Pakistan's new military ruler will soon disappoint unless he quickly comes up with a detailed rescue plan for the country's sluggish economy. analysts say. reports AFP.

Top of the list for General Pervez Musharraf, who seized power In a bloodless coup last month, is to restore relations with the International Monetary Fund and to reopen vital creditlines.

Although Musharraf has highlighted the economy as his key challenge, he has come up with few specific proposals.

The general has promised a war on corruption, with new courts due to be set up next week which will deal particularly with the vast number of loan defaulters in Pakistan.

In addition, the new finance minister Shaukat Aziz is reportedly planning an across the board sales tax, although he has yet to make a formal announcement. "People are now looking for something more specific. In the next 10 days or so we are expecting some proposals," said Mushtaq Khan, chief economist at Investment bank ABN Amro in Islamabad.

To revive the economy he must interact with the IMF. Hopefully he will invite an IMF team over."

The IMF has set in place a 1.5 -billion-dollar credltline for Pakistan, of which Islamabad has drawn barely a tenth. The next installment is still under negotiation and the IMF has warned ft is concerned about the military coup.

The Fund will want clear reforms before the Ioan is granted.

"I don't envy the new government. The first couple of measures are going to be hard. I hope the people appreciate this has to be done," Khan said. The Fund will want a sales tax introduced, to boost paltry tax revenues in a country where fewer than two per cent of the 140 million population pay tax. The IMF will also want petrol prices to be raised in line with international prices, Khan said.

Both steps have long been discussed here but are deeply unpopular.

The government has changed but the problems have not," Khan said. "We cannot go the isolationist road and this government knows that, which is heartening."

Pakistani economic growth is reasonable, thanks to a usually strong cotton crop, but is not soaring as economists say it should.

In the past fiscal year to June the economy grew 3.1 per cent and ABN Amro forecasts

Sowth of 3.0 to 3.5 per cent is year.

"We must think and devote our energies to finding policies that would alm at fundamental restructuring of the economy." finance minister Aziz, a former Citibank executive, said last week.

Aziz has little room to manoeuvre. Foreign currency reserves are a fragile 1.5 billion dollars and Islamabad must service its huge annual external debts, worth more than 32 billion dollars.

"I am not sure they have really got to the heart of the matter so far," said Shahrukh Rafi Khan, executive director of the Sustainable Development Policy Institute, a thinktank in Islamabad.

He said the key was to reduce the huge slice of the national budget now swallowed up by servicing debt and military funding, which cost more than half Pakistan's output.

In addition the new military regime should not shy away from unpopular policies, like a broad sales tax. he said. And a promised crackdown on corruption. due to begin on November 17. would be crucial.

"People are waiting for the 17th to see whether heads will roll and If so what heads will roll." he said.