The aggression by the Indian government has impacted the markets on both sides of the border. There was a significant drop in the Pakistani stock exchange, which has now settled at -128.98. The same goes for the Indian stock exchange, which has now settled at -68.28. The economies of both countries are relying excessively on their growth but due to the overindulgence in the pre-election narrative by the Indian government, it has taken over the need for prioritising the country. “Extremist elements in the Indian government are fueling anti-Pakistan sentiments in an effort to win the upcoming elections while the other reason behind this conspiracy seems to be the hearing of the case against India’s Kulbhushan Jadhav in the International Court of Justice,” said economist Dr Ashfaq Hassan Khan.

The current situation has also impacted the flights on both sides of the border. All airports near the border have ceased operations to accommodate the current situation. This is going to impact the mobility of the common man who has to travel for daily business and this will only add to the anti-war rhetoric because both countries are well versed in lockdowns and the impact they have on daily lives. The atmosphere just two days of aggression has been able to create has built an unfavourable market environment.

At the same time, war is not a feasible solution to the current scenario. War impacts the capital, increases transport costs and there are postponements in investments. It destroys fiscal institutions of countries and also lowers tax base which impacts the capacity of a country to generate revenue. A study of post-war recovery process indicates that economies rely heavily on foreign aid during the war than after it. Both sides should be wary of these developments, especially the Indian government which is relying heavily on war jingoism to win votes.