KARACHI/ISLAMABAD, May 12 (Reuters) - 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.

He added that trade talks with the United States - which had

played a key role mediating a ceasefire between the two

countries - would likely have progress in "short order" and that

Pakistan could import more high-quality cotton, more soy beans

and was also exploring other asset classes,

including hydrocarbons.