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Terror Attack Ignites India-Pakistan Tensions and Trade Fallout

5/3/2025

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Summary

Story summary

Tensions soared between India and Pakistan following a devastating terrorist attack in Pahalgam, Kashmir, claiming 26 lives. India swiftly accused Pakistan of complicity, prompting trade suspensions and military threats. While official trade is limited, a staggering amount of informal trade continues, often funneled through third countries, casting a shadow over future relations between these nuclear rivals.

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Story summary

Tensions soared between India and Pakistan following a devastating terrorist attack in Pahalgam, Kashmir, claiming 26 lives. India swiftly accused Pakistan of complicity, prompting trade suspensions and military threats. While official trade is limited, a staggering amount of informal trade continues, often funneled through third countries, casting a shadow over future relations between these nuclear rivals.