Pakistan, Oct. 14 -- Pakistan is close to reaching a key agreement with the International Monetary Fund (IMF) this week. Finance Minister Muhammad Aurangzeb confirmed that talks have made strong progress. He said Pakistan hopes to sign a staff-level agreement (SLA) within days. The deal will unlock a $1.2 billion payout under the IMF's $7 billion loan programme. Talks also include a separate $1.4 billion climate-focused facility agreed last year.

An IMF mission visited Pakistan recently but left without signing the SLA. However, discussions continued after the visit ended. Aurangzeb said talks focused on economic targets, reforms, and progress under the programme. The IMF must approve these reviews to release the next loan tranche. Pakis...