The government of Pakistan is set to begin talks with the International Monetary Fund for a new program after the current one expires, sources said on Tuesday.

The sources said that the talks will begin in the month of December and the incoming elected government would have to sign the new agreement immediately upon taking power.

The terms of the agreement will be finalised by the interim government and will have to be taken forward by the new government.

Sources within the finance ministry said that a new program with the IMF is ‘unavoidable’ to help the economy recover fully.

If elections go ahead as per schedule on February 8, the new government would have about four months to finalise a new budget. The budget for the year 2024-25 would reportedly have to be finalised with IMF input.

Pakistan signed a Stand-by Arrangement with the Fund in July which would get the country $3 billion over nine months.

The program was signed by the outgoing Pakistan Democratic Movement government after length negotiations which included a mini-budget and historically high interest rates.