Broadcaster Geo reported hours earlier, citing sources, that all matters had been settled between both sides over the bailout.
To release the funds, the IMF needs to reach a staff-level agreement with Pakistan, which Sheikh said would then be agreed upon after approval from the IMF's head office in Washington.
Analysts say the money is necessary to prevent Pakistan from defaulting on external payment obligations, and that an IMF deal paves the way for other organisations and governments to provide funds.
The fiscal adjustments demanded by any deal, however, are likely to fuel record high inflation, which hit 27.5% year-on-year in January, analysts say. Finance Minister Ishaq Dar was quoted earlier on Thursday by Pakistan's Dawn newspaper as saying "it is expected matters will be settled today." If a deal is reached and funds are dispersed, $1.4 billion would remain of the $6.5 billion. The bailout programme, approved in 2019, is due to end in June. The IMF funding is crucial for the country's $350 billion economy, which is facing a balance-of-payments crisis with foreign exchange reserves dipping to less than three weeks of import cover. Last week, Prime Minister Sharif called Pakistan's economic situation "unimaginable." (Writing by Miral Fahmy and Charlotte Greenfield; editing by Sudipto Ganguly and Sharon Singleton and Caitlin Webber)
@Sudipto_Reuters; caitlin.webber@thomsonreuters.com))