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flag Moody's warns that escalating tensions between India and Pakistan may severely impact Pakistan's economy.

flag Moody's warns that rising tensions between India and Pakistan could hurt Pakistan's economy, hampering its fiscal consolidation and access to external financing. flag India’s macroeconomic stability, supported by strong public investment and private consumption, is expected to remain robust despite potential higher defense spending. flag Pakistan's foreign exchange reserves are already under pressure, and a prolonged conflict could worsen this situation.

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