As Pakistan declares victory, confidence in the troubled country’s state institutions is re-emerging, at least for now.

India and Pakistan have agreed to a ceasefire following U.S.-led talks to end the most serious military confrontation between the nuclear-armed rivals in decades.

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.