Moody’s Report: Pakistan’s Economy at Risk Amid Rising Tensions with India

New Delhi: After the Pahalgam terror attack, there is a rift between India and Pakistan. There are war-like conditions in both countries. To teach Pakistan a lesson, India has also dealt a severe blow at the trade level. The Indus Water Agreement of 1960 has also been terminated. Pakistan is still continuously violating the ceasefire across the border. To teach it a lesson, the Indian Army has made full preparations.

If a war breaks out between the two countries, Pakistan is sure to be ruined. Pakistan is far behind India in terms of economic condition and military strength. American rating agency Moody’s has shared a special report on how Pakistan will be ruined in the war. The report claimed that if the tension between India and Pakistan increases, it will affect Pakistan’s economy.

This big claim was made in the report.

According to the American rating agency Moody’s, if the rift between India and Pakistan continues for a long time, then Pakistan’s economy will be deeply hurt by it. Its effect will be directly seen on its financial stability. The report claimed that the pressure on Pakistan’s forex reserves will also increase significantly. They are already considered insufficient to repay foreign debt in the coming years.

Tension will not affect India.

If Moody’s report is believed to be true, then the tension will not affect India. Economic relations between India and Pakistan are minimal. According to the report, less than 0.5 per cent of India’s total exports are sent to Pakistan. This is why even if there is a war, there will not be any impact on India. No major shock has been predicted in India’s economic activities.

The situation worsened after the terrorist attack.

After the terrorist attack in Pahalgam, Jammu and Kashmir, the situation between India and Pakistan remains tense. Twenty-six soldiers died on the spot in the Pahalgam attack. TR took the responsibility for this- Taiba, a terrorist organisation flourishing in Pakistan. After this, the Indian Army is continuously conducting operations to teach a lesson to the terrorists. The number of soldiers on the international border has also been increased considerably.