Former Pakistan prime minister Nawaz Sharif's Pakistan Muslim League-Nawaz has demanded some strategic ministries like defence in the new coalition government to be led by the Pakistan People's Party in the continuing backroom jostling over sharing of power.

The distribution of ministries and parliamentary committees was discussed by top leaders of the PPP and PML-N in Islamabad on Thursday, though the final decision on the government is expected to be announced only on March 17, shortly before the first session of the new National Assembly.

The two parties have already agreed on a formula for sharing ministries according to the proportion of seats won by them in the lower house of parliament. The PPP will have 54 per cent of berths in the federal cabinet and the PML-N about 40 per cent.

Senior PML-N leader Chaudhry Nisar Ali Khan, who has played a key role in negotiations with the PPP on government formation, said the cabinet will be kept small in view of the financial problems faced by the country.

Sources told PTI only 15 to 20 ministers might be inducted into the government in the first phase and another 20 ministers in the second phase.

Though there was general agreement among the two parties over the formula for representation in the federal cabinet and parliamentary committees, there were differences over some important ministries, the Dawn newspaper quoted sources as saying.

A PPP leader said the PML-N was demanding several strategic ministries. Sources also said the two parties were yet to decide about key ministries like interior, finance, foreign affairs and defence.

PML-N leader Ishaq Dar, who earlier served as finance minister during Sharif's second tenure as premier, is widely tipped for the same slot in the new government.

The PPP and PML-N are also expected to provide details about their plans to reinstate the judges who were deposed during 2007's emergency through a parliamentary resolution after the new MPs take oath on Monday.

The PML-N and Awami National Party, the other key player in the coalition, have also said they will fully support any prime ministerial candidate chosen by the PPP.

Both parties have said the naming of the candidate for premiership is the right of the PPP as it had emerged the largest party in the February 18 general election.

Meanwhile, the PPP and PML-N are working on a plan to bring down prices of essential commodities, an issue that was also blamed for the ruling PML-Q's poor performance in the polls.

"While political issues are being sorted out, a strategy is also being finalised to deal with issues like increase in prices of food items and petroleum products and the increasing fiscal and trade deficits," former finance minister and senior PPP leader Syed Naveed Qamar told Dawn.

"It is very unfortunate that the PML-Q kept doing politics over the past six years and ignored important economic issues which are now causing a huge problem. These issues need immediate attention by the new government".

Qamar said it would not be 'easy sailing' for the PPP, PML-N and ANP as they will 'be inheriting a ruined economy'.