Tensions between India and Pakistan have sharply escalated following the deadly terrorist attack in Pahalgam, Jammu and Kashmir, on April 22, 2025, where 26 civilians were brutally killed. India has accused Pakistan of backing the massacre, a charge Pakistan denies. This incident has triggered a series of retaliatory measures by India, aimed at isolating Pakistan diplomatically and economically, and weakening its alleged support for cross-border terrorism.
In the aftermath of the Pahalgam attack, India has adopted a multi-pronged strategy to isolate Pakistan. This includes diplomatic, economic, and logistical actions. India has formally downgraded diplomatic relations, recalling diplomats, expelling Pakistani diplomats, and freezing diplomatic outreach. Several Pakistani military diplomats and intelligence officials have been declared persona non grata, accused of espionage and activities incompatible with their diplomatic status.
Economically, India has taken stringent measures. Trade relations have been completely severed, with a ban on all imports and exports with Pakistan, impacting direct bilateral trade and third-country trade. The 1960 Indus Waters Treaty has been suspended, halting cooperation on river water management. India has also urged the Asian Development Bank (ADB) and other international bodies to reduce or suspend funding to Pakistan. These actions are expected to economically strain Pakistan and reflect India's hardened stance against terrorism.
Logistically, India has closed the Wagah-Attari border crossing indefinitely and suspended the ceremonial Beating Retreat parade. Postal services between the two countries have been ceased, and Indian airspace has been closed to Pakistani commercial aircraft, disrupting Pakistan's international air connectivity. Pakistani flagged vessels are banned from docking at Indian ports, with reciprocal restrictions imposed by Pakistan.
India is also actively working to isolate Pakistan on the international stage. Finance Minister Nirmala Sitharaman has urged the ADB to suspend all funding to Pakistan and has engaged with other European nations to push for stricter oversight on international funding to Pakistan. India is expected to raise concerns with the International Monetary Fund (IMF) regarding Pakistan's ongoing bailout package and may approach the Financial Action Task Force (FATF) to include Pakistan in the grey list.
The global response to the Pahalgam attack and India's subsequent actions indicates a growing isolation of Pakistan. While tensions between the two nations are not new, the international reaction to the April 22 massacre has been different. Gulf nations, once unwavering allies of Pakistan, have condemned the attack in the strongest terms, and even China has been cautious with its response.
These measures reflect a comprehensive strategy by India to combat cross-border terrorism and exert pressure on Pakistan to cease its alleged support for terrorist activities. The situation remains highly volatile, with potential for further escalation.