The prolonged tensions with India are significantly harming Pakistan's already fragile economy, according to a recent report by Moody's Ratings.

IExternal Affairs Minister S. Jaishankar and Commerce Minister Piyush Goyal both reiterated that India will not be bullied into concessions on agreements that sacrifice its sovereignty or economic agenda, even as the U.S. granted a 90-day tariff reprieve.

The Indian stock markets experienced a significant rebound on April 8, 2025, following a steep decline triggered by the announcement of new U.S. tariffs by President Donald Trump.