Pakistan's Finance Minister Predicts Manageable Fiscal Impact Amidst India Tensions
Pakistan's Finance Minister, Muhammad Aurangzeb, assured that recent tensions with India will not significantly impact the country's fiscal situation. He also highlighted progress in trade talks with the U.S. and outlined upcoming IMF negotiations. A ceasefire was reached following recent clashes, with potential resumption of the Indus Water Treaty.
During a recent interview, Pakistan's Finance Minister Muhammad Aurangzeb addressed concerns over escalating tensions with India, stating that the fiscal impact remains manageable and no new economic assessment is required. The situation, described as a 'short duration escalation,' will not significantly affect the national budget, he assured.
Aurangzeb emphasized ongoing trade negotiations with the United States, which aim to enhance imports of cotton and soybeans while exploring new asset classes like hydrocarbons. Notably, the U.S. has imposed a 90-day pause on Pakistan's 29% tariff due to a $3 billion trade surplus.
In a significant financial development, the International Monetary Fund (IMF) has approved a $1 billion loan disbursement for Pakistan as part of a comprehensive $7 billion bailout package. An additional $1.4 billion loan for climate resilience has also been sanctioned, with further budget discussions scheduled with the IMF in mid-May.
(With inputs from agencies.)
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