Moody’s report for Pakistan : After the terrorist attack in Pahalgam on 22 April, the war between India and Pakistan is heard. After the attack, the Government of India has taken strict action against Pakistan to shelter terrorist organizations. India has suspended the Indus Water Treaty and stopped all transactions including visas with Pakistan, while Pakistan has also taken decisions like closing its airspace for India.
Moody’s expressed concern over Pakistan’s economic crisis
The most important thing in the dispute between the two countries is that India has not yet mentioned the war, despite that many leaders including Pakistan Prime Minister Shahbaz Sharif are threatening India. Not only this, Pakistan, who is facing the economic crisis, has made full preparations for the war and has deployed the army on the border with India. Apart from this, Pakistan is contacting many countries of the world and requesting them to stop war. Pakistan also knows what its situation will be in case of war. However, in the midst of these developments, the rating agency Moody’s has also raised the concern of the Pakistani government.
Pakistan will be destroyed if there is a war.
The Moody’s rating agency said in its annual report, “If the tension between the two countries increases, India’s economic situation will not have much impact, but the neighboring Pakistan will be financially destroyed, as it is already facing economic crises.” Pakistan is trying to bring its economy back on track with great difficulty. However, if there is a war, then there will be a situation that it will be difficult to keep the economy stable for many years. The report said, “The war will be a shock for Pakistan, as its foreign exchange reserves will be badly affected.” Apart from this, its GDP will also decline.
India’s export to Pakistan is less than 0.5 percent.
After the Pahalgam attack, Moody’s has released a report titled ‘Impact on Pakistan’s development with increasing tension between India and Pakistan’. It states that Pakistan will export less than 0.5 percent of its exports to India in 2024, so war will not have much impact on India as Pakistan’s economic relations with India are normal. Moody’s has said that increasing stress with India will affect Pakistan’s growth and existing fiscal consolidation, which will make it difficult for Pakistan to gain economic stability.
