The request will be made at talks between the Thai government and the IMF from August 3 to 17 to review Thailand's progress on economic reform and discuss the next disbursement from the IMF rescue package, officials and analysts say.

Both sides, mindful of the recent upheavals in Indonesia, want to prevent the beleaguered Thai economy from sliding into chaos, which could fan social unrest.

The Thai central bank issued a gloomy forecast for the economy on Friday which revealed a sustained recession and no signs of an early recovery.

It now expects Thai gross domestic product to contract 6.0-7.0 per cent this year, from a contraction of 4.0 to 5.5 per cent seen earlier, if the government does not adopt stimulative measures during the rest of the year.

"For the next review with the IMF, the government aims to puttogether a package of stimulus measures to insure against further decline in the economy and bring about gradual recovery," deputy prime minister Supachai Panichpakdi told a conference recently.

Topping the agenda will be a widening of the budget deficit, reform of the ailing financial sector and ways to diffuse social risks associated with rising unemployment.

Thailand agreed to abide by IMF economic reforms after it accepted a $17.2 billion bail-out package arranged by the world body in August last year. More than $10 billion in loans have already been disbursed from the rescue package.

Under the deal, Thailand and IMF must review the economic situation and targets every quarter. So far, four such reviews had been conducted and documented in letters of intent.

Finance minister Tarrin Nimanahaeminda has said the government will push for the IMF to allow Thailand to run a deficit of more than 2.5 per cent of gross domestic product (GDP) for its fiscal year 1999 starting in October to enable greaterstate spending to stimulate consumption.