6/5/2025–|Last update: 6/5/202510:14 AM (Mecca time)
Despite the escalation of the national discourse in Pakistan after the tourist mine incident in the Kashmir region, which blew up a new wave of tension with India, a number of businessmen and economic leaders expressed their deep concern about the repercussions of the military escalation on the national and regional economy, calling for urgent calm and the resumption of diplomatic dialogue.
According to the Pakistani newspaper “Don”, the business circles in Pakistan believe that the current tension threatens to abort the opportunities for economic recovery, and weakens the hopes of regional integration at a time when the global economy turns towards regional markets and commercial integration.
Direct effects on the market and supply chains
The repercussions have already appeared, as the KSA-100 index decreased in the Karachi Stock Exchange by 3055 points since the attack of April 22, while the stability of the local currency decreased, as the rupee exchange rate ranged between 280 and 284 rupees against the dollar in the open market.
Experts pointed out that the pharmaceutical sector is among the most affected, due to its great dependence on the imports of active substances from India.
“Vital imports from India have reached the ports, but they were not released. There is no explanation from the customs, although the organizational decision” SR or 977 “is exempting these shipments,” said Sheikh Caesar Waheed, former president of the Pakistani Pharmaceutical Association.
“The banks refuse to open documentary credits or implement the contracts. Indian suppliers are ready to deal, but obstruction comes from the Pakistani side.”
Mutual procedures and diplomatic escalation
According to the report, India has taken a series of monoism after the incident, which included:
- Close the land borders through a facet crossing.
- Canceling the water agreement for 1960.
- The Pakistani diplomatic mission was expelled.
- Stop release visas.
- Pakistani visitors were expelled.
- Close the airspace in front of Pakistani aircraft.
In response, Pakistan announced counter -measures, including:
- The closure of its side from the border from May 1
- Expelling Indian citizens, with the exception of the Sikhs.
- South Asian Association visas suspend the Indians.
- Reducing the Indian Commission staff to 30.
- Stop trade and air field against India.
Warnings of an economic and humanitarian catastrophe
“It is difficult to appreciate the full impact now, but I hope that the international agents will prevail. International agents are busy with the repercussions of American customs duties, but the biggest concern is on the weak groups that will pay the price if the dispute escalates,” said the prominent businessman Mossadeq Zulfiin.
As for Muhammad Ali Taba, one of the most prominent businessmen in the country, he reduced the possibility of a widespread war, saying: “I do not see a real threat. The two countries should have self -control. Economic cooperation is the key to improving people’s lives on both sides.”
In the same context, Chaudri Mohamed Said, the former president of the Pakistani Chambers of Commerce and Industry, said: “Every missile is launched costs millions, but the real loss is economic and human. This confrontation threatens to undermine the capabilities of the” China -Pakistan “economic corridor, which represents an opportunity to enhance foreign export and investment.”
Warning from international isolation
For his part, Moeen Muhajir, a former official in the Chamber of Commerce for foreign investors, said: “The current escalation is driven by electoral considerations in India, but it will not be submitted to the open war due to nuclear deterrence. What worries me is its impact on the Pakistan Stock Exchange and my future profits as an investor.”
Muhajir expressed his concern about international negligence regarding what is happening in South Asia, due to two basic factors:
- Geopolitical competition as the United States and Russia seek to support India as a parallel force for China.
- The economic interests of many countries, including Islamic countries, which avoid criticizing India for fear of losing access to its huge market of 1.5 billion consumers.
He called on many business leaders to open a neutral investigation into the Bagham incident with the participation of Pakistan, as a step towards a new start, stressing that the continued escalation will undermine economic stability and threaten the regional fabric.
