According to a report published by Greek media outlet Greece City Times, India’s Operation Sindoor has had a significant impact on Pakistan’s economy, further straining an already fragile financial environment. The report suggests that heightened military tensions have undermined investor confidence, disrupted key economic sectors and increased concerns over rising inflation.
International Desk: The report states that Pakistan was already grappling with mounting debt, limited foreign exchange reserves and persistent economic challenges before the operation. In the aftermath of Operation Sindoor, these pressures reportedly intensified, creating greater uncertainty across financial markets and the broader economy.
The report further claims that investors have become increasingly cautious, with several foreign companies adopting a wait-and-watch approach towards new investments in Pakistan. This shift in sentiment has reportedly weakened the country’s investment climate while also driving up borrowing and insurance costs.
Pakistan’s economy, which has experienced relatively slow growth in recent years, was already facing structural difficulties, with GDP growth hovering at around 3 per cent, according to the report. Persistently high inflation has also reduced the purchasing power of ordinary citizens, adding to domestic economic strain.
The tourism industry has reportedly been among the sectors most affected, as international travellers began cancelling or postponing visits to Pakistan amid concerns over regional stability. Businesses linked to hospitality, including hotels, restaurants and travel services, have consequently faced increased pressure. The aviation sector has also been impacted by disruptions to regional air traffic and cargo operations.
The report additionally notes that ongoing regional tensions have affected trade activity and export performance. Several international buyers are said to be redirecting their sourcing and business interests towards countries such as Bangladesh, Vietnam and India instead of Pakistan.
Experts cited in the report warn that inflationary pressures in Pakistan may continue to rise in the coming years. They also caution that if regional instability persists, the country’s economic challenges could deepen further.
