Pakistan finance minister: conflict with India won't have large fiscal impact

13/5/2025 6:19

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, Pakistan's Finance Minister said in an interview with Reuters on Monday.



Trade talks with the United States – which had played a key role mediating a ceasefire between the two countries – would likely have progress in “short order” and that Pakistan could import more high-quality cotton, more soy beans and was also exploring other asset classes, including hydrocarbons, Finance

Minister Muhammad Aurangzeb said in the online interview.



On Monday, U.S. President Donald Trump said the U.S. is ready to help India and Pakistan after a ceasefire agreement, claiming trade was a big reason they "stopped fighting".



Pakistan faces a 29% tariff on exports to the US due to an approximate $3 billion trade surplus, but this is currently under a 90-day pause announced in April.

The International Monetary Fund (IMF) on Friday approved a $1 billion loan disbursement to Pakistan as part of a larger $7 billion bailout agreement.