The recent military escalation with arch-rival India won't have a large fiscal impact on Pakistan and can be managed within the current fiscal space, with no need for a new economic assessment, Pakistan's Finance Minister said in an interview with Reuters on Monday.

Pakistan tensions raise global concern amid economic fragility in Pakistan and rising defence costs on both sides.

India opted to abstain from the vote rather than support the loan or oppose it outright. It is because India's action is shaped by both procedural limitations and strategic concerns.