India’s Operation Sindoor Exposes Pakistan’s Economic Weakness- Is Collapse Next?

India hits terror at its roots. India’s military operation, named Operation Sindoor, has done much more than just destroy terrorist camps. This was not just a military attack, it was a strong, strategic step to target the heart of terror financing and shake Pakistan’s economy. After India struck nine locations in Pakistan and Pakistan-occupied Kashmir (PoK), the financial shockwaves were immediately felt. On the very next day, Pakistan’s KSE-100 index fell by nearly 5%, losing over 6,200 points. The fear of war, falling investor confidence, and global pressure have now combined to push Pakistan’s economy into deep trouble.

Pakistan’s terror strategy now backfiring

For decades, Pakistan has used terrorism as a tool against India. It gave shelter to terrorist groups, trained them, and helped them cross the border. But this time, India did not stay silent. Operation Sindoor was a calculated and precise strike on those camps that planned the April 22 attack in Pahalgam, where 26 lives, including Indian soldiers and a Nepali citizen, were lost.

One key goal of Operation Sindoor was to choke the financial lifeline of terrorism. India has long accused Pakistan of printing and sending fake Indian currency notes to harm India’s economy. But now, under this operation, many of these networks have been tracked and exposed. Secret printing presses are being shut down, and countries like the UAE, France, and the US are helping India stop illegal money flow through hawala networks and fake charities.

Through Operation Sindoor, India is giving proof to international organizations like FATF (Financial Action Task Force) about how Pakistan continues to fund and protect terrorist groups. FATF has already kept Pakistan on its grey list, which affects its ability to get foreign loans and trade benefits. If FATF blacklists Pakistan, its access to global funds will be completely blocked. In fact, the IMF’s upcoming meeting on May 9 is a big test for Pakistan. With a $1.3 billion loan on the line, the IMF may delay or deny this help due to Pakistan’s poor record on controlling terrorism and maintaining financial discipline.

Inflation and fuel crisis are exploding

Pakistan’s economy is already suffering due to inflation, debt, and weak governance. But Operation Sindoor has made it worse. As global trust in Pakistan goes down, countries and companies are avoiding trade deals. With limited fuel imports and a fall in foreign currency reserves, Pakistan is facing rising fuel prices, gas shortages, power cuts, and skyrocketing prices of basic food items. The common people are suffering, and the public anger is growing.

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While Pakistan’s stock market is crashing, India’s financial markets remain stable and strong. The Nifty index recovered quickly, and foreign investors continued to buy Indian stocks. In the last 14 days alone, Rs 43,940 crore was invested by foreign institutional investors. Factors like global trust, low oil prices, and India’s strong economic policies are helping the country stay on track.

Pakistan’s friends are turning away

China, which once supported Pakistan with money and projects under CPEC (China-Pakistan Economic Corridor), is now stepping back. Local protests in Balochistan, where people are angry at China’s exploitation and Pakistan’s abuse, are making it difficult for Chinese companies to continue. At the same time, the IMF and other lenders are not ready to give more money until Pakistan shows real reform. India’s diplomatic efforts under Operation Sindoor are making sure the world sees Pakistan’s truth.

Even international credit rating agencies like Moody’s have warned that rising tensions with India will hurt Pakistan’s economy even more. The report said that these tensions will slow down growth, increase debt, and make it harder for Pakistan to get money from outside. With high borrowing costs, low production, and fewer jobs, Pakistan’s internal economy is collapsing.

Pakistan’s central bank tried to reduce its interest rates by 1%, but it did not help. Even though the stock market rose slightly for a short time, it crashed again. Business leaders in Pakistan wanted a bigger rate cut, but the government was helpless. The main reasons for this failure? Terrorism, corruption, and mistrust, all being exposed through Operation Sindoor.

This is not the first time Pakistan’s economy has reacted to Indian action. After the Pulwama attack in 2019 and India’s Balakot airstrike, the KSE100 index fell. But what’s different now is the scale and planning behind Operation Sindoor. India has combined military strength with economic and diplomatic power to bring long-term pressure.