Archive · 2 Jun 2025
Moody's: Pakistan Can't Afford War with India
Moody's, a company that looks at how strong countries' money situations are, said Pakistan shouldn't go to war with India.
Pakistan doesn't have enough money saved up to pay its debts, and a war would make things worse.
They owe a lot of money to other countries.
Meanwhile, India is doing well financially.
If India and Pakistan fight, India's money situation might slow down a bit because it would have to spend more on defense.
Basically, Pakistan's money problems make a war a really bad idea for them.
Moody's warns Pakistan against war with India due to its fragile economy.
Pakistan's foreign exchange reserves are insufficient to cover its external debt.
A war would likely worsen Pakistan's economic situation and impact its ability to repay debts.
India's economy, in contrast, has been growing faster than other major economies.
India's fiscal strength might slow due to higher defense spending in sustained tensions.
- Who
- Moody's, a global ratings firm.
- What
- Moody's analysis on the potential economic consequences of conflict between Pakistan and India.
- When
- The warning was issued on May 5, 2024.
- Where
- Pakistan and India.
- Why
- Moody's warns of war impacts due to Pakistan's economic vulnerability.
- Pakistan's Foreign Exchange Reserves
- Below what's needed to meet external debt needs
- Pakistan's Debt to Foreign Lenders
- Over $131 billion at the end of December 2024
- India's Economic Relations with Pakistan
- Less than 0.5% of India's total exports in 2024