(Bloomberg) -- Pakistan and the International Monetary Fund are wrapping up two weeks of talks for a new loan on Friday, after the officials from the two sides focused on the government’s proposals for the upcoming budget.

The budget, which has traditionally been used a way to implement IMF loan conditions, will be presented to parliament next month, Rana Ihsaan Afzal Khan, a coordinator for Prime Minister Shehbaz Sharif, said in an interview in Islamabad on Thursday.

Finance Minister Muhammad Aurangzeb has said Pakistan intends to reach a staff-level agreement with the IMF for a bigger and longer loan by June-end or early July. The South Asian nation needs fresh support from the Washington-based lender to shore up its foreign reserves and give policymakers some space to boost a sputtering economy that has been grappling with record inflation.

Among other steps, Sharif’s government plans to reduce energy costs for industries as a way to make exports cheaper and more competitive, Khan said, adding that the details could be announced as soon as Friday. He also said that the government will aim to reduce spending by cutting the number of ministries. 

A new IMF program would likely be the toughest in recent history, forcing the government to consider some unpopular decisions. Key objectives in the negotiations for the fund will include broadening the tax base, improving debt sustainability, restoring viability to the energy sector and improving state-owned companies, the IMF said last month.

--With assistance from Ronojoy Mazumdar and Eric Martin.

(Updates with details from second paragraph.)

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