Escalating Tensions: Pakistan Missile Tests Amidst Indo-Pak Standoff

Pakistan conducted its second missile test within three days as tensions heightened with India, following a deadly attack in Kashmir. India responded by ordering several states to conduct security drills. Moody's warned that this standoff could hinder Pakistan's economic recovery and stability.

Pakistan tested another missile, the second on consecutive days, raising tensions with India. Amidst this, Indian authorities have initiated security drills, signaling rising concerns over potential conflicts.

Relations soured following a tragic attack in Kashmir on April 22, which claimed 26 lives. Indian officials have indicated possible Pakistani involvement, an allegation that Islamabad has firmly denied.

The escalating situation may disrupt Pakistan's economic recovery, warned Moody's, potentially hindering access to external support and pressure on its fiscal health. Russia and Iran have shown concern, urging diplomacy, as India's increased defense spending poses a risk to its fiscal policies.

(With inputs from agencies.)