India strikes Pakistan, Pakistan says downs Indian jets in worst fighting in decades 

Metal debris lies on the ground in Wuyan in India-administered Kashmir's Pulwama district May 7, 2025.(Reuters)
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Updated 07 May 2025
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India strikes Pakistan, Pakistan says downs Indian jets in worst fighting in decades 

  • India says struck nine sites that served as militant recruitment centers, launchpads and indoctrination centers
  • Pakistan army says at least six locations across its territory targeted, with 26 civilians killed and 46 injured

ISLAMABAD: Pakistan military spokesperson Lt. Gen. Ahmed Sharif Chaudhry said on Wednesday Pakistan had shot down five Indian fighter jets after New Delhi launched overnight strikes in which 26 civilians were killed.

In the sharpest military escalation in more than two decades between the nuclear-armed rivals, the Indian government said it struck nine Pakistani “terrorist infrastructure” sites where a deadly attack in Indian-administered Kashmir on April 22 had been planned. The attack took place on the tourist hill station of Pahalgam in the part of Kashmir governed by India, with 26 men killed. 

The Pakistani military said six locations across its territory — Ahmedpur East, Muridke, Sialkot, Shakargarh in the eastern province of Punjab and Kotli and Muzaffarabad in Azad Kashmir — were targeted. Azad Kashmir is a part of the disputed Kashmir valley that is administered by Pakistan. 

In televised remarks on Wednesday morning, Chaudhry said Indian aircraft had fired from Indian airspace using long-range weapons.

“Five planes and one combat drone, which had attacked Pakistan were shot down,” he said, naming three Rafales and an MiG-29 and Su-57 each and a combat drone. 




An army soldier stands guard on the rooftop of a mosque building damaged by a suspected Indian missile attack near Muzaffarabad. (AP)

He added that the engagements were done as “self defense” after the Indian aircraft attacked Pakistani territory and killed civilians, including women, children and the elderly. 

Four local government sources in Indian-administered Kashmir told Reuters three fighter jets had crashed in separate areas of the Himalayan region during the night. Indian defense ministry officials have not officially confirmed the report.

Pakistan’s foreign ministry said the Chargé d’Affaires had been summoned “to receive Pakistan’s strong protest over the unprovoked Indian strikes.”

“It was conveyed that India’s blatant act of aggression constitutes a clear violation of Pakistan’s sovereignty. Such actions are in contravention of the UN Charter, international law, and established norms governing inter-state relations. Pakistan firmly rejected India’s baseless justifications for its hostile conduct,” the foreign ministry said in a statement.

“The Indian side was warned that such reckless behavior poses a serious threat to regional peace and stability.”

INDIAN MEDIA BRIEFING

In New Delhi, two Indian military spokespersons told a briefing Indian forces had attacked facilities linked to militant groups Jaish-e-Mohammed and Lashkar-e-Taiba. Pakistani officials say India only hit civilian infrastructure. 

The strikes targeted “terrorist camps” that served as recruitment centers, launchpads, and indoctrination centers, and housed weapons and training facilities, the Indian spokespersons said.




Smoke rises in the main town of Poonch district on May 7, 2025. (AFP)

They said Indian forces used niche technology weapons and carefully chose warheads to avoid collateral damage to civilians and civilian infrastructure, but did not elaborate on the specifics or methods used in the strikes.

“Intelligence and monitoring of Pakistan-based terror modules showed that further attacks against India were impending, therefore, it was necessary to take pre-emptive and precautionary strikes,” Indian Foreign Secretary Vikram Misri, the top official in its external affairs ministry, told the briefing.

The joint briefing by the Indian military and foreign ministry listed past attacks in India blamed on Pakistan, with Misri saying Pakistan had not done anything to “terrorist infrastructure” after the Pahalgam attack, which triggered the latest standoff. 

Pakistan had denied involvement in the attack and Prime Minister Shehbaz Sharif had offered to be part of any credible and transparent investigation.

Kashmir has been disputed between India and Pakistan since 1947. Both rule it in part and claim it in full, and have fought two of their three wars over the Himalayan region. India accuses Pakistan of arming and training militants involved in a separatist insurgency in its part of Kashmir since 1989, which Islamabad denies, saying it offers only moral and diplomatic support to the Kashmiri people in their struggle for self-determination.

The current confrontation is reminiscent of the last major military standoff between the two nations in 2019, when an Indian airstrike in the northwestern town of Balakot was followed by Pakistani retaliatory action, including the downing of an Indian fighter jet and the capture of its pilot, who was later released in a gesture of goodwill.

On Wednesday morning, the South Asian neighbors also exchanged intense shelling and heavy gunfire across much of their de facto border called the Line of Control, which divides disputed Kashmir between them. 

The shelling across the frontier in Kashmir killed 10 civilians and injured 48 in the Indian part of the region, police there told media. At least six people were killed on the Pakistani side, Reuters reported, quoting officials.

– With inputs from Reuters

 


Pakistani economists flag debt sustainability risks as foreign loans surge in FY26

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Pakistani economists flag debt sustainability risks as foreign loans surge in FY26

  • Pakistan received $2.98 billion from bilateral, global lenders from July to November this year, official data shows
  • Economists urge government to take structural reforms to boost exports, cut energy costs, ensure rupee stability

KARACHI: Pakistani economists on Wednesday warned the government against debt sustainability risks as the country’s foreign loan receipts surged to nearly $3 billion in the first five months of the current fiscal year, data from the economic affairs ministry showed. 

Pakistan received 16 percent more financing, which is $2.98 billion, from bilateral and multilateral lenders during the July to November period of the current fiscal year compared to last year, the economic affairs’ ministry data showed. 

Pakistan, as per the data, seeks to raise $19.8 billion in loans this year through June, which include $16.7 billion non-project and $3.11 billion project loans from multilateral lenders such as the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), Islamic Development Bank (IsDB), European Union (EU), European Investment Bank (EIB), UNICEF and others. 

Pakistan’s bilateral lenders include the countries of China, Saudi Arabia, Kuwait, Oman, the US, Denmark, France, Germany, Italy, Japan and South Korea

“As long as you are utilizing the loan for economic recovery and growth, it is understood,” Sana Tawfik, head of research at the Karachi-based brokerage firm Arif Habib Limited, told Arab News.

“But in the long term, it is not sustainable to rely only on loans. Foreign reserves should be built on FDI [foreign direct investment] and not on loans,” she added. 

Pakistan’s finance adviser Khurram Schehzad and finance ministry spokesperson Qamar Sarwar Abbasi did not respond to requests for comment.

Cash-strapped Pakistan came close to a sovereign default in 2023 before a last-gasp financial bailout by the International Monetary Fund (IMF) averted the risk. 

While Pakistan has lowered inflation and registered other economic gains, the country’s $15.9 billion foreign reserves mostly come from the IMF in budgetary support and bank deposits from countries such as Saudi Arabia and China.

The cash-strapped country will seek $13.5 billion in budgetary support, $700 million in short-term loans from the IsDB, $1.44 billion as program loans, $1 billion worth of oil on deferred payments and $3.11 billion as project loans by June, the data said. 

Prime Minister Shehbaz Sharif’s government also plans to raise $400 million through issuing international bonds, $3.1 billion in loans from foreign commercial banks, $410 million from the IMF, $609 million through Naya Pakistan Certificates (NPCs) and $5 billion as time deposits from Saudi Arabia, and $4 billion as safe deposit from China.

“Long-term solution is not to take loans and this only adds up to the existing external account,” Tawfik said. 

She, however, appreciated the government’s ability to reduce its current account deficit in recent months. The economist noted that Pakistan, in the short run, could manage its current account deficit if it remains in the $1.5 billion range throughout the year.

She urged the government to focus on increasing exports, noting its debt servicing requirement was $25.8 billion this year.

Tawfik called for long-term reforms such as reducing the cost of doing business, cutting energy costs, clearing Pakistan’s longstanding power sector debt and keeping the rupee stable to attract increased remittances from Pakistanis working abroad.

“In the long run, we must focus on increasing Pakistan’s exports, remittances, and FDI,” the economist said. “FDI is the most important.”

‘OBVIOUSLY A RISK FACTOR’

However, neither are Pakistan’s exports on the rise nor is FDI. Pakistan’s current account deficit widened by 37 percent to $16 billion from July to November this year. This was due to a 6.4 percent decline in exports to $12.8 billion and a 13 percent hike in imports to $28 billion, data from the Pakistan Bureau of Statistics (PBS) showed. 

FDI dropped by more than 25 percent to $927 million during the same period and has never surged beyond $3 billion in nearly 20 years, data from Pakistan’s central bank shows. 

“Our debt sustainability will be questioned at any point if we, going forward, are not able to match these debt flows or counter these debt flows with growth and remittances and exports,” Muhammad Saad Ali, head of research at Lucky Investments Ltd, told Arab News. 

He noted that debt sustainability is “obviously a risk factor” as Pakistan has not increased its FDI nor exports during the period when its foreign debt has increased.

However, he said that there was a positive side to the 16 percent rise in foreign debt receipts as well, adding that recent macroeconomic improvements have enabled Islamabad to borrow more from global lenders. 

But the risks remain. 

“You (government) are increasing your debt and your debt sustainability will come into question again if global factors or global environment turn south,” he warned.