Pakistan, May 13 -- ISLAMABAD/KARACHI - Finance Minister Muhammad Aurangzeb has assured that the recent military escalation with India will not severely affect Pakistan's economy. He stated that the fiscal impact is minimal and can be handled within the current budget without requiring a new economic review.

In an interview with Reuters on Monday, the finance minister described the conflict as a "short duration escalation." He emphasized that Pakistan's financial system is strong enough to manage any temporary shocks without disrupting economic stability. "We have enough fiscal space to absorb the impact," he said confidently.

Meanwhile, Aurangzeb revealed that trade discussions with the United States are progressing positively followin...