Pakistan’s Finance Minister, Mohammad Aurangzeb, has assured that the recent tensions with India will not have a significant financial impact on Pakistan. Speaking to a British news agency, the finance minister confirmed that Pakistan is expecting the disbursement of bailout funds from the International Monetary Fund (IMF) today.
Aurangzeb stated that there is no need for a new economic review due to the escalating tensions, and discussions with the IMF regarding the national budget will continue from May 14 to May 23.
He also expressed confidence that trade issues with the United States will be resolved soon, and emphasized that India must unilaterally restore the suspended Indus Water Treaty.
The finance minister welcomed the recent ceasefire agreement between Pakistan and India, facilitated by U.S. President Donald Trump’s mediation. He noted that things appear to be returning to normal, which he described as a positive development.
Aurangzeb further revealed that the Pakistan Stock Exchange showed signs of improvement on Monday, adding that the tensions with India are unlikely to have any major financial consequences. He assured that any financial impact would be managed within the current fiscal budget.
Regarding the upcoming national budget, Aurangzeb stated that it would take a few more weeks before it is finalized and that any necessary defense-related expenditures would be addressed accordingly.
Notably, India’s attempts to halt Pakistan’s IMF loan program recently failed. The IMF’s Executive Board approved the next installment of a $7 billion loan under the Extended Fund Facility, providing further relief to Pakistan’s economy.
