<h1>India-Pakistan Tensions Threaten Pakistan's Economic Stability, Disrupt Diplomatic Relations and Trade Agreements</h1> Moody's analysis reveals escalating tensions between India and Pakistan could significantly impact Pakistan's economic growth. While India remains relatively immune due to minimal economic ties, Pakistan faces potential challenges including reduced forex reserves, limited external financing, and fiscal consolidation setbacks. Following a terrorist attack, both nations have suspended diplomatic relations, trade agreements, and treaty obligations. Global powers have urged de-escalation, but tensions persist with potential economic and geopolitical implications.