Tourist Massacre in Kashmir Fuels Diplomatic Crisis and Economic Risks for India and Pakistan

INSUBCONTINENT EXCLUSIVE:
News agencies report that the April 22 attack in Pahalgam, Kashmir, killed 26 tourists, with 25 Indians and one Nepali among the victims
Gunmen targeted travelers in a remote valley, accusing them of supporting Indian Prime Minister Narendra Modi before opening fire.The
Resistance Front, a group tied to Lashkar-e-Taiba, claimed responsibility, citing grievances over demographic changes in the region
Indian authorities identified three of the four suspects, two as Pakistani nationals and one as a local Kashmiri, all linked to
Lashkar-e-Taiba.India responded with sweeping measures
Authorities closed the main land border with Pakistan, suspended the Indus Waters Treaty, expelled Pakistani diplomats, and ordered all
Pakistani citizens to leave India within 48 hours.The government also reduced its diplomatic presence in Islamabad and banned Pakistani
entry under the SAARC visa exemption program
aircraft.Tourist Massacre in Kashmir Fuels Diplomatic Crisis and Economic Risks for India and Pakistan
suspension, threatened regional stability
The Indus Waters Treaty, signed in 1960, regulates water sharing from the Indus River basin.India-Pakistan Water Tensions Threaten Regional
Hydropower plants like Tarbela and Mangla rely on these flows
is debt-ridden, and the country imports nearly 19 million tons of coal annually to offset energy shortfalls
history of conflict over Kashmir, with four wars since 1947 and frequent accusations of cross-border terrorism
The current crisis raises fears of military escalation between two nuclear-armed states.Indian leaders face internal pressure for a strong
response, while Pakistani officials warn that any interference with water supplies could be seen as an act of war.The attack and its
aftermath have rattled local economies, especially tourism in Kashmir, and threaten broader trade and energy stability in South Asia
Both governments show little sign of backing down, leaving the region on edge and investors wary of further disruption.