Talks between the International Monetary Fund and Pakistan's new civilian government on a program to tackle the country's economic problems are well advanced, an IMF spokesman said on Thursday. "There are still a few issues on which work is continuing in order to reach understandings," IMF spokesman David Hawley told a regular press briefing.

Pakistan has not formally said it is seeking IMF aid, but other governments willing to lend to it have indicated they will only do so unless it has an IMF program. For Pakistan's program to be successful, Hawley said it would need to restore confidence among domestic and foreign investors by addressing economic imbalances and protecting the poor through well targeted and well funded social programs. "Both of these (aims) will be an integral part of any IMF support for the country," Hawley said, adding, "I can't be more specific, however, on timing of an eventual agreement."

Copyright Reuters, 2008