Prolonged tension to hurt Pakistan's economy: Moody's
Monday, 5 May 2025 Moody's Rating warns that escalating tensions with India could negatively impact Pakistan's growth, fiscal stability, and macroeconomic situation. Pakistan's weak fundamentals and reliance on IMF bailouts make it vulnerable. While Pakistan's economy shows signs of improvement, persistent tensions could strain its foreign exchange reserves and access to external financing. In contrast, India's economy is expected to remain stable, with minimal disruption due to limited economic ties with Pakistan.
Pakistan has conducted a training launch of its Abdali short-range ballistic missile, which boasts a strike range of 450 kilometers. The missile test, carried out under the ambit of the Army Strategic Forces Command, is seen as a provocative move amid rising tensions with India. In response, India...
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Behind the scenes of the India-Pakistan ceasefire lies calculated pressure from the United States. Relying heavily on U.S.-controlled IMF loans and military aid, Pakistan was reportedly nudged by Washington to de-escalate. The U.S. is believed to have used its sway over Pakistan’s military, intelligence ties, and influence in international forums—possibly with help from Saudi Arabia—to defuse tensions. The strategic move helped avoid a full-scale conflict, as India also agreed to the ceasefire to ensure economic stability and regional peace.
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India’s powerful and precise military response under Operation Sindoor forced Pakistan to seek a ceasefire, following the brutal terror attack in Pahalgam. The Indian Army’s targeted strikes on nine terror hubs across Pakistan and PoK sent a clear message: terror will be met with force. Despite international outreach, including behind-the-scenes pressure from the U.S. reportedly linked to Pakistan’s IMF bailout, India held its ground—refusing any political dialogue or compromise. The ceasefire was brokered solely through military channels, with Pakistan’s DGMO reaching out first. Indian officials have reiterated: any future provocation will cross a red line.
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Heavy shelling by Pakistan rocked the Uri sector today, damaging 5–6 shops in the Bandi area and striking dangerously close to the national highway between Uri and Baramulla. One shell hit a moving bike, escalating fears among civilians. Indian forces swiftly retaliated, targeting Pakistani positions with precision. This latest provocation adds to a growing list of ceasefire violations, pushing tensions higher along the Line of Control. The Army remains on high alert, and the damage on the Indian side underscores the gravity of the current standoff.
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PAKISTAN PM SHEHBAZ SHARIF CALLED FOR DIRECT TALKS WITH INDIA, EXPRESSING READINESS TO DISCUSS KASHMIR, TERRORISM, AND INDUS WATER TREATY.
#ShehbazSharif #PakistanIndia #IndiaPakistanTensions..
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Moody's Rating warns that escalating tensions with India could negatively impact Pakistan's growth, fiscal stability, and macroeconomic situation. Pakistan's... IndiaTimes