India’s Multi-Pronged Attack On Terror-Sponsor Pakistan | Can Pakistan Afford A Conflict?

The Pakistan Stock Exchange in Karachi had to suspend trading today after its benchmark index – the KSE30, plunged more than 7% in trade. The index slipped further when trading resumed but it lay bare Pakistan’s battle against an economic freefall. All hopes are currently pinned on a crucial IMF board meeting on May 9, where a $1.3 billion loan tranche hangs in the balance. But this financial lifeline faces stiff resistance — from India. Following the deadly Pahalgam attack and India’s retaliatory Operation Sindoor, New Delhi has raised serious objections to Pakistan receiving fresh IMF funds, citing misuse risks amid high defence spending and state-sponsored terror concerns. The question now is can Pakistan afford a conflict with India? Pakistan’s own economic indicators raise red flags: low growth, high inflation, a ballooning fiscal deficit, and debt payments devouring half the national budget. With forex reserves barely covering 2 months of imports, default risks are mounting.