India suspends flights at 24 airports
India has suspended civilian flights at 24 airports in the north following fighting with nuclear-armed rival Pakistan.
Nearly 50 people have perished, mainly in Pakistan, since India launched air strikes on Wednesday targeting 'terrorist camps' and sparking the worst clashes between the neighbors in decades.
Late Thursday, the Indian government released a list of 24 airports that have been closed for civilian flights, including in the cities of Jodhpur, Ludhiana and Amritsar near the western border with Pakistan.
Some of India's biggest airlines, including Air India, IndiGo and SpiceJet, have cancelled over 100 flights since Wednesday.
Local media reported the suspension of civilian flights may be lifted on Saturday morning.
Indian airlines have also issued advisories to passengers flying out from other airports, asking them to arrive at least three hours before departure, citing a government notification on enhanced security measures.
The strikes on Wednesday came two weeks after New Delhi blamed Islamabad for backing an attack on tourists in the Indian-administered side of disputed Kashmir -- a charge Pakistan denies.
The arch-rivals have since exchanged drones and missiles, as well as artillery fire across their contested border in Kashmir.
The violence has raised fears of a wider conflict between the neighbors.
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'The government tried to ensure that the reforms being undertaken currently are on track and Pakistan continues with the fiscal consolidation phase.' Tawfik was pointing to several key ongoing fiscal and structural reforms that align with Pakistan's commitments under the IMF program and broader efforts to stabilize the economy. These include fiscal consolidation through broadening the tax base, rationalizing subsidies, and phasing out tax exemptions; revenue mobilization though increased taxation on interest income, a phased reduction in the super tax and the removal of certain tax exemptions to improve revenue collection; and debt rationalization by managing debt servicing costs, likely by shifting to more concessional financing and restructuring high-cost debt. While presenting the budget, the government also maintained it would continue its focus on providing relief to the salaried class and try to strike a balance between austerity with social protections. Tawfik agreed that the government had attempted to strike such a balance between providing relief and raising revenue, citing relief measures for the salaried class in the budget and the phased reduction in super tax. 'The government tried to make sure that we continue with the reforms that we have undertaken in the recent past, while ensuring that we meet the targets set for the upcoming fiscal year,' Tawfik said. UNREALISTIC GROWTH TARGET? However, Tawfik was skeptical of the government's 4.2 percent GDP growth target, calling it 'unrealistic' in the current economic context. 'Agriculture has been underperforming, and industries have not been performing due to the high cost of doing business. While we have seen interest rates coming down, agriculture would be the key sector to look forward to,' she said. Arif Habib Ltd. has forecast GDP growth of around 3.6 percent for FY26, below the government's target. Tawfik also noted that while the government had projected inflation at 7.5 percent, her team expected it to be slightly lower, around 6 percent to 6.5 percent, although risks remained from global commodity prices, exchange rate pressures and the fading base effect. She also flagged a projected current account deficit for FY26, in contrast to a surplus of $1.5 billion expected this fiscal year, citing pent-up demand and increased imports. Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., echoed the sentiment that the budget was more 'measured' compared to previous years. 'In the last two years, we've seen very strict budgets. This time, the government has been a little lenient. We've seen reform measures but also some relaxations,' Ghani said. He pointed to tax relief for the salaried class and incentives for the construction sector, though he noted that the Public Sector Development Programme (PSDP) allocation had decreased. 'There are many allied industries that benefit when we see measures taken for construction,' he said, while noting a less favorable outcome for the auto sector. Ghani acknowledged the government's target of a 2.4 percent primary surplus as 'optimistic,' but achievable, and described the overall budget as 'laying the groundwork' for sustained economic growth. On the 4.2 percent GDP target, he noted: 'It's an optimistic target… but with interest rates coming down, we hopefully will see contribution from [agriculture and industrial] segments, and we can get closer to the target.' STRONG SUPPORT FROM EQUITY MARKETS While the budget drew applause for investor-friendly policies and efforts toward macroeconomic stability, analysts cautioned that delivery on ambitious fiscal and growth targets remained key to sustaining momentum. The stock market, however, responded positively from the opening bell. 'As soon as the market started today [Wednesday], it rallied close to 1,400 points,' Ghani said. 'We are in an IMF program and we're seeing a decent budget this time. All of these things point to the fact that the market is going to reach new heights in the coming months.' Indeed, despite macroeconomic challenges, the budget drew strong support from equity markets. A post shared by Arab News Pakistan (@arabnewspk) 'Measures we have seen so far are broadly positive for the stock market,' said Tawfik. 'The government kept capital gains tax and dividend income tax unchanged, which the market had feared would be increased.' Sector-specific measures were seen as favorable for cement, steel, and textile sectors, particularly with subsidies for low-cost housing and removal of sales tax exemptions for certain regions, which levels the playing field for local manufacturers. 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