"India-Pakistan War: Which Sectors Face the Worst Impact Amid War Uncertainty?", 8 May 2025

In April 2025, a devastating terrorist attack in Pahalgam, Indian-administered Kashmir, claimed the lives of 26 tourists and injured many others. India attributed the attack to Pakistan-based militants, leading to heightened tensions between the two nuclear-armed neighbors. In retaliation, India launched “Operation Sindoor,” targeting alleged terrorist camps in Pakistan, while Pakistan denied involvement and condemned the strikes as acts of war.

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The conflict escalated further with the suspension of the Indus Waters Treaty by India, restricting water flow to Pakistan, and Pakistan closing its airspace to Indian airlines.

..The Karachi Stock Exchange plummeted, and India’s markets faced volatility.

..Trade between India and Pakistan has come to a stop after the Pahalgam attack. India has banned all direct and indirect imports from Pakistan. The Attari-Wagah border, a key trade route that handled Rs. 3,886.53 crore (approximately $470 million) in goods in 2023–24, is now closed. Pakistani traders are facing big losses and shortages, especially in essential items like medicines and farm products from India. ..Pakistani ships are also not allowed at Indian ports, making trade even harder..

..Tourism in Kashmir has been badly affected after the recent attack in Pahalgam, which led to hotel cancellations within just a few days. ..Countries like the U.S., the UK, and Russia have issued travel warnings against visiting Jammu and Kashmir, which has made the situation worse..

..The aviation industry is experiencing widespread disruptions due to the closure of airspaces and airports. ..India has closed 27 airports in its northern and western regions, resulting in the cancellation of over 430 flights.

..A war between India and Pakistan causes serious problems for the economy. Important sectors like trade, tourism, and aviation are badly affected.