Aurangzeb described India-Pakistan conflict as a “short duration escalation” with minimal fiscal impact, stating it can be “accommodated within the fiscal space which is available to the government of Pakistan”
read more
Pakistan’s Finance Minister Muhammad Aurangzeb on Monday said the recent military escalation with arch-rival India won’t have a large fiscal impact on Pakistan and can be managed within the current fiscal space, with no need for a new economic assessment.
In an online interview with Reuters, Aurangzeb said trade talks with the US — which played a key role in mediating the ceasefire between India and Pakistan — were expected to progress in “short order.”
STORY CONTINUES BELOW THIS AD
He added that Pakistan was considering increased imports of high-quality cotton and soybeans, and was also exploring other asset classes, including hydrocarbons.
On Monday, US President Donald Trump said the US is prepared to assist India and Pakistan following their ceasefire agreement, attributing the de-escalation in part to trade pressure, which he claimed played a major role in halting the conflict.
Pakistan currently faces a 29% tariff on exports to the U.S. due to an estimated $3 billion trade surplus, though the tariffs are under a 90-day suspension announced in April.
Meanwhile, the International Monetary Fund (IMF) approved a $1 billion loan disbursement to Pakistan on Friday, as part of a broader $7 billion bailout package.
Aurangzeb confirmed that the tranche would be received on Tuesday.
The IMF execu