Pakistan stocks rebound as investor confidence steadies amid calls to ease India tensions

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday sought Saudi Arabia’s assistance in de-escalating heightened tensions with India over an attack in the disputed Kashmir region that killed 26 tourists last week, Sharif’s office said.
New Delhi has accused Pakistan of backing the deadliest attack in Indian-administered Kashmir since 2000. Islamabad denies it and has offered to participate in a credible international probe. The two nuclear-armed neighbors have since exchanged gunfire, diplomatic barbs, expelled each other’s citizens and shut border in a series of punitive measures against each other.
Top Pakistani leaders have reached out to senior officials in China, Saudi Arabia, Iran, Egypt and other countries, amid fears that India’s possible actions over the attack in Pahalgam may lead to a wider conflict in the region, and on Friday, Sharif met with Saudi Ambassador to Pakistan, Nawaf bin Said Al-Malki.
He shared Pakistan’s perspective on recent developments in South Asia after the Kashmir incident and said Pakistan had rendered great sacrifices in its counter-terrorism efforts over the years not only to protect itself but the entire world, rejecting the “baseless Indian accusations” linking Islamabad with the April 22 assault.
“The prime minister said it was inconceivable for Pakistan to act in an irresponsible manner to jeopardize its achievements and derail the country from the path of economic progress,” Sharif’s office said. “He urged brotherly countries, including Saudi Arabia, to impress upon India to de-escalate and defuse tensions. He reaffirmed Pakistan’s desire for peace and stability in South Asia.”
Pakistan is treading a long, tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program since averting a default on its foreign debt obligations in 2023. Islamabad has reached out to countries in Central Asia and beyond to boost trade as economic indicators significantly improved in the South Asian country.
Public anger has swelled in India and Prime Minister Narendra Modi has vowed to pursue the attackers “to the ends of the earth.” A Pakistani minister has said that Pakistan has “credible intelligence” that India is planning to attack it within days.
Since the attack, Pakistani and Indian troops have exchanged fire along their de facto border in Kashmir, driving tensions between both sides to their highest point in recent years. The disputed region is split between India and Pakistan and claimed by both in its entirety. The two countries have fought two wars and one limited conflict over the Himalayan territory.
During his conversation with the Saudi envoy, the Pakistan premier reiterated his call for a transparent and neutral international investigation into the April 22 incident.
“The Saudi ambassador thanked the prime minister for sharing his views on this important issue and said that Saudi Arabia wanted to work with Pakistan for peace and security in the region,” Sharif’s office said.
The United Nations (UN) has urged the arch-rivals to talk, while China, which shares its border with both India and Pakistan, along with other countries has called on both sides to “exercise restraint.”

MUZAFFARABAD: Neelum Valley in northern Pakistan attracts some 300,000 tourists each summer who marvel at its natural beauty. But the threat of war with nearby India has emptied its hotels.
Gunmen last week killed 26 people in the Indian-administered Kashmir’s resort town of Pahalgam, fueling tensions between the nuclear-armed nations after India blamed Pakistan for the attack, a charge Pakistan denies.
Neelum Valley is less than 3 kilometers (1.8 miles) from the Line of Control, the de facto border that divides the disputed region of Kashmir, making it vulnerable to any military activity.
Hotel owner Rafaqat Hussain said Thursday the crisis has hit the tourism industry hard.
“Most tourists have left and returned to their cities because there is a risk of war,” he said.
Authorities in the Indian-controlled part of Kashmir temporarily shuttered dozens of tourist resorts following the attack as a precaution.
No such order has come from Pakistani authorities. Bazaars in the Pakistani border town of Chakothi were open for business, although people were concerned.
“First of all, our prayer is for peace, as war always affects civilians first,” shop owner Bashir Mughal told The Associated Press, saying he would fight alongside the army in the event of conflict.
Pakistan used to help residents build bunkers near their homes during periods of intense cross-border firing. But the population has grown and some homes lack shelters.
“Local casualties could be devastating if war breaks out,” Mughal warned.
Saiqa Naseer, also from Chakothi, shuddered at the childhood memories of frequent firing across the border.
“Now, as a mother, I find myself facing the same fears,” she said.
She remembered Indian shells striking the picturesque valley when the two countries came close to war in 2019. She has a bunker at her home.
“If war comes, we will stay here. We won’t run away,” she said.