Pakistan and the International Monetary Fund have cited progress in talks on releasing critical funding to keep the country's economy afloat.

Pakistan's finance ministry and the IMF met for 10 days to discuss conditions delaying disbursement of 1.1 billion dollars, part of a bailout deal signed in 2019.

Pakistan desperately needs the funds, as its currency has plunged as energy prices soared. Massive floods last year added to its woes.

The country's central bank declared its foreign reserves have fallen to less than 3 billion US dollars, after dropping more than 30 percent in one month.

Its finance minister Ishaq Dar said Friday that talks with the global lender ended on a positive note and he was optimistic the funds will be released.

The IMF said talks to finalize details will continue in coming days. It said in a statement Pakistan must implement policies to regain macroeconomic stability, which include strengthening its fiscal position and moving to a market-based exchange rate.