Pakistan calls on international partners to restrain ‘spoilers' as Moody's concerned over India standoff

Arab News

05-05-2025

ISLAMABAD: Pakistani Deputy Prime Minister Ishaq Dar on Monday urged the international community to prevent 'spoilers' from obstructing its path to economic growth as Moody's Ratings said escalating frictions between New Delhi and Islamabad could weigh on Pakistan's economic growth and impair access to external financing.
Dar's comments came in the wake of New Delhi blaming Islamabad for a deadly attack on domestic tourists in Indian Kashmir last month. India's Prime Minister Narendra Modi has vowed to punish the backers of the attack 'beyond their imagination' and fears have been rising that India might carry our surgical strikes or special forces raids along the de facto border that divides the disputed Kashmir valley between the two nations. Pakistan has denied involvement in last Tuesday's attack but has warned it will hit back if it is targeted.
Speaking at the 4th Annual Regional Dialogue 2025 organized by the Institute of Regional Studies (IRS) in Islamabad, Dar, who is also the foreign minister, said Pakistan was endowed with rich natural and human resources and an enormous economic potential, located at the crossroads of South Asia, Central Asia, and the Middle East, and wanted to 'capitalize on these inherent advantages for the prosperity and betterment of our people and that of the region.'
'We have prioritized geo-economics as one of the cardinal pillars of our engagement with our international partners. We are determined to enhance regional connectivity, and increase bilateral and multilateral developmental partnerships for socio-economic uplift,' the foreign minister said.
'To achieve these goals, we are desirous of peace in the region and beyond. At a time when we are headed on the path of economic stability, we do not want any distractions from our people-centric development agenda.'
He said he hoped the international community would help Islamabad achieve its goals, and prevent any spoilers in the region 'from obstructing our path to peace and prosperity.'
The recent standoff with India has come as Pakistan treads a tricky and narrow path to economic recovery.
On Monday, Moody's Ratings said tensions between India and Pakistan would impair Pakistan's economic growth and access to external financing. The ratings agency said persistent tensions could pressure Pakistan's foreign exchange reserves, though it did not expect a full-scale military conflict.
Pakistan secured a $7 billion bailout program from the IMF last year and was granted a new $1.3 billion climate resilience loan in March.
The program is critical to the $350 billion economy and Pakistan said it has stabilized under the bailout that helped it stave off a default threat.
Last week, according to media reports, India raised concerns with the IMF on its loans to Pakistan, asking for a review.
The adviser to Pakistan's finance minister has said the IMF program is 'well on track.'
'The latest review has been done well and we are completely on track,' adviser Khurram Schehzad, told Reuters last week, adding that Pakistan had very productive spring meetings with financial institutions in Washington.
'We did about 70 meetings ... interest has been very high for investing and supporting Pakistan as the economy turns around,' Schehzad said.
The soaring tensions between the two countries have drawn global attention and calls for cooling tempers.
US Vice President JD Vance said on Thursday Washington hoped Pakistan would cooperate with India to hunt down Pakistan-based assailants.
Kashmir is claimed in full by both Hindu-majority India and Muslim-majority Pakistan, but each rules it in part.
-With input from Reuters