Federal Finance Minister Muhammad Aurangzeb has stated that the recent tensions with India will not have a significant financial impact on Pakistan’s economy and can be managed within the existing fiscal space.
In an interview with the foreign news agency Reuters, he further stated that trade negotiations with the United States will be concluded soon, and Pakistan is considering importing high-quality cotton, soybeans, and other asset classes, including hydrocarbons. Washington had played a key role in the Pakistan-India ceasefire.
Muhammad Aurangzeb termed the recent Pakistan-India dispute as “short-lived” and said its financial impacts would be minimal. He stated that it can be adjusted within the current financial situation available to the Government of Pakistan.
The Finance Minister indicated that whatever measures are necessary to meet defense needs will be taken; however, it is too early to comment on an increase in defense expenditure in the upcoming budget.
It is worth noting that due to a trade surplus of nearly $3 billion, Pakistan faces a 29% tariff on exports to the U.S., but its implementation was suspended for 90 days in April.
On May 9, the IMF approved the release of a $1 billion tranche to Pakistan under a $7 billion bailout package. Muhammad Aurangzeb stated that this tranche will reach Islamabad on Tuesday.
