India Pak Tension After India's action, there is panic in Pakistan. In such a situation, if this tension continues like this or it turns into a war, then it will have a huge impact on Pakistan's economy. Pakistan's economy will be affected more than India. This has been said by the famous rating agency Moody's in a report released on Monday.

 India-Pak Tension  After the Pahalgam attack, tension is increasing between India and Pakistan. In the last ten days, India's top leadership has warned several times to teach a lesson to those who carried out this cowardly attack and those who sheltered them.

There is chaos in Pakistan. In such a situation, if this tension continues or it turns into a war, then it will have a huge impact on Pakistan's economy. Pakistan's economy will be affected more than India. This was said by the famous rating agency Moody's in a report released on Monday.

• The report says that Pakistan's economy, which was going through a very bad situation for a long time, was now showing signs of improvement. But the current tense situation can affect its growth rate and can also defy the policies of the Pakistan government to establish fiscal balance.
• Moody's assessment also says that tensions between India and Pakistan will remain. Tensions between the two countries sometimes lead to military action. This has been happening between the two countries since independence, but there is little chance of it turning into a full-blown war.

According to Moody's report, the fundamentals of the Indian economy appear to be stronger than Pakistan. There is stability here, the growth rate is still at a high level despite being low because government expenditure is increasing and the condition of private consumption is also good.

Moody's has said that if local tensions continue, there is no possibility of a significant impact on India's economic activities. The reason given is that India has very limited economic relations with Pakistan. But more expenditure on the defense sector will have an impact on the fiscal balance and the roadmap of fiscal management prepared by the Indian government may be affected.

It has been said that Pakistan's economy has been affected because after a long time, the situation there had started to improve. Foreign exchange reserves were increasing, inflation was also coming under control and there was a possibility of a faster economic growth rate.

The government there is still trying to get a new loan from the IMF. But if the tension with India continues for a long time, it will affect the foreign exchange reserves and Pakistan will also face problems in raising loans from outside.

It should be noted that recently IMF and World Bank have reduced the possibility of economic growth rate of Pakistan for the year 2025 from 3.2 percent to 3 percent. Whereas these agencies have estimated India's growth rate to be 6.2 percent despite the decrease in it. India's foreign exchange reserves are worth 688 billion dollars while Pakistan's is just 15 billion dollars.