Part 3/9:
Though both nations have yet to engage in full-scale war, the rising hostility poses significant economic risks. Investment in South Asia is already constrained by inflation, slow growth, and fragile geopolitical dynamics. Pakistan is particularly vulnerable, relying heavily on International Monetary Fund (IMF) support while grappling with dwindling foreign exchange reserves. “Two nuclear-armed nations simply no one can afford to go in a direction where escalation takes us into uncharted territory,” stated Pakistan’s finance minister.