Operation Sindoor Economic Impact
Operation Sindoor, India’s airstrikes on terrorist sites in Pakistan post the April 22 Pahalgam attack, has deepened Pakistan’s economic woes.
Pakistan’s $350 billion economy, with $15.58 billion in forex reserves covering just two months of imports, faces collapse risks.
The KSE-30 index crashed 7.2% on May 8, halting trading.
India’s suspension of the Indus Waters Treaty threatens a 20–30% agricultural output drop, critical for 22.7% of GDP.
Trade bans and airspace closures cost millions daily, while a potential war could drain $10–15 billion, depleting reserves.
India’s $4.19 trillion economy, with $688 billion reserves, remains resilient. Prolonged conflict could trigger Pakistan’s fiscal ruin, food inflation, and social unrest.
Read More at Moneycontrol
