Pakistan’s recent military confrontation with India is unlikely to impact the country’s 2025-26 budget, Finance Minister Muhammad Aurangzeb told Reuters on Monday.
He emphasized that the fiscal effects remain minimal and are well within existing resources, eliminating the need for a revised economic strategy.
Aurangzeb also confirmed that Pakistan is set to receive a $1 billion disbursement from the International Monetary Fund (IMF) on Tuesday. He expressed optimism over renewed trade talks with the United States, which played a key role in brokering a ceasefire. He noted potential boosts in imports of high-quality cotton, soybeans, and hydrocarbons.
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Commenting on the recent conflict, Aurangzeb called it a brief escalation with limited fiscal impact, adding that defense needs would be addressed if necessary.
He also expressed confidence in the restoration of the Indus Water Treaty and ruled out any long-term disruptions.
Tensions surged after a deadly April 22 attack in Indian-Illegally Occupied Kashmir that killed 26 tourists. A ceasefire was reached on Saturday after four days of hostilities.
