US EditionEscalating tensions with India to impact Pakistan’s economic growth: Moody’s
- On May 5, 2025, Moody's indicated that ongoing heightened conflicts between India and Pakistan could hinder Pakistan's economic expansion and disrupt efforts to strengthen its fiscal position.
- The recent tensions follow a deadly April 22 attack in Indian Kashmir killing 26 tourists and subsequent diplomatic sanctions, including treaty suspensions and trade halts.
- Moody's noted Pakistan's foreign-exchange reserves remain insufficient for upcoming external debt payments, risking impaired access to external financing amid worsening relations.
- Moody's stated that India’s economic ties with Pakistan are very limited, accounting for less than 0.5% of its exports, and anticipates that ongoing tensions are unlikely to cause significant impacts on India's overall economic activity, despite the possibility of increased defense expenditures affecting fiscal consolidation.
- Moody's warned the persistent India-Pakistan tensions will impede Islamabad's macroeconomic progress while periodic flare-ups likely won’t escalate into full military conflict.
15 Articles
15 Articles
The Straits Times
ZawyaPakistan tests missile amid India standoff, Moody's warns of economic cost
ISLAMABAD/BELA NOOR SHAH, Pakistan - Pakistan carried out a second missile test in three days on Monday after saying it was preparing for an incursion by India, as Moody's warned that the standoff over violence in Kashmir could set back Islamabad's economic reforms. Read more at straitstimes.com.
Escalating tensions with India to impact Pakistan’s economic growth: Moody’s
Global rating agency Moody’s on Monday said that escalating tensions between India and Pakistan would weigh on Pakistan’s economic growth. An attack on April 22 in occupied Kashmir’s Pahalgam killed 26 people, mostly tourists, in one of the deadliest assaults since 2000. India has implied cross-border links without evidence, while Pakistan has rejected the claim and called for a neutral probe. Tensions have since spiked, with Pakistan reinforcin…
Tensions With India Would Weigh On Pakistan's Growth: Moody's
Moody's Ratings on Monday said sustained escalation of tensions between India and Pakistan will not have any major economic disruption in the country, but will be a setback for Islamabad as its forex reserves could come under pressure.
If you fight against India, you will have to come out with a 'begging bowl', Moody's report on Pakistan reveals big information
India Pakistan War: International financial rating agency Moody's (Moody's Report). Who will suffer the most if there is a war between the two countries? This has been revealed in the Moody's report.
India-Pakistan tensions could derail Pakistan’s economy, says Moody’s
The global credit rating agency Moody’s has warned that rising tensions between Pakistan and India could seriously affect Pakistan’s economic recovery. This warning comes after a deadly attack in Pahalgam, a tourist area in Indian-administered Kashmir, where 26 people were killed. India blamed Pakistan for the attack, while Pakistan strongly denied any involvement and called for a neutral investigation. As the situation becomes more serious, bot…
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