Pakistan's new Prime Minister Shahid Khaqan Abbasi has finalised his Cabinet after a reshuffle, local media and a senior government source said on Friday, with Ishaq Dar returning as finance minister.

The Cabinet, which was dissolved when Nawaz Sharif was ousted last Friday, contains most of the staunch allies of the toppled leader, English-language The News and Dawn newspapers reported. A senior government official confirmed to Reuters the names.

Asif Khawaja, who was in charge of the defence as well as water and power ministries, has been appointed as foreign minister, while Ahsan Iqbal, previously in charge of the planning commission, will take on the interior ministry portfolio.

Abbasi, former petroleum minister, has opted to keep a ministry portfolio and will head a new ministry that will see a merger of the energy and petroleum ministries.