The Pahalgam attack, which resulted in 26 fatalities, primarily among Hindu tourists, has led to a severe diplomatic rift. India has accused Pakistan of involvement, citing evidence of Pakistani nationals among the attackers, a claim Islamabad denies. In retaliation, India suspended the Indus Waters Treaty, citing national security concerns, and initiated civil defense drills nationwide. Pakistan has responded with missile tests and closed its airspace to Indian aircraft. The United Nations Security Council has urged both nations to de-escalate tensions and engage in dialogue
Economic Consequences
The conflict has severely impacted the region’s economy, particularly the tourism sector. In Indian Kashmir, hotel bookings have plummeted, with establishments offering discounts up to 70%. On the Pakistani side, popular destinations like Neelum Valley have been closed, leading to significant financial losses for local businesses. Both countries face increased defense spending and disrupted trade, further straining their economies .