Almost two weeks after the people of Pakistan voted for a new government, two major political parties - Pakistan Muslim Legaue-Nawaz (PML-N) and Pakistan Peoples Party (PPP) - have agreed on a power-sharing formula, Geo TV said on Wednesday.
The deal between the two was finalized on Tuesday amid talks of blackmailing among the former coalition partners, they said.
Shehbaz Sharif is reported to be nominated as prime minister while Asif Ali Zardari will contest for the presidency.
This ended the political uncertainty that emerged after the February 8 polls that resulted in a hung national assembly.
The announcement was made by the PPP chairperson at a late-night press conference in Islamabad, adding that Sharif claimed the two parties not only had the numbers to form a government but also had the support of other smaller parties.
Meanwhile, the delay in forming the government caused several concerns as Pakistan is grappling with an economic crisis amid slow growth and record inflation.