Pakistan Finance Minister Says India Tensions Manageable Within Budget

Pakistan's Finance Minister Muhammad Aurangzeb stated that the recent military escalation with India will have a minimal fiscal impact and can be managed within the current budget framework without the need for a new economic assessment. He expressed optimism about advancing trade talks with the United States, which helped broker the ceasefire, focusing on imports of high-quality cotton and soybeans and exploring new sectors like hydrocarbons. The U.S. has temporarily suspended a 29% tariff on Pakistani exports due to a $3 billion trade surplus, providing relief to exporters. Pakistan is set to receive a $1 billion disbursement from the IMF as part of a $7 billion bailout, alongside a newly approved $1.4 billion loan for climate resilience. Budget planning for the next fiscal year is underway with talks scheduled with the IMF mid-May. While Aurangzeb did not provide specifics on military spending, he assured that defense requirements will be met as needed.