Tensions between Islamabad and New Dehli escalate after 26 people, mostly tourists, were killed in Kashmir last month.

India hit Pakistan with air strikes deep into the country, killing dozens, but Pakistan claimed to have shot down multiple Indian planes. (The details of that claim remain murky.) India accused Pakistan of a drone attack near the Kashmiri line of control,

The recent military escalation with arch-rival India won't have a large fiscal impact on Pakistan and can be managed within the current fiscal space, with no need for a new economic assessment, Pakistan's Finance Minister said in an interview with Reuters on Monday.