India, Pakistan Sever Ties After Deadly Kashmir Attack

After a terror attack in Pahalgam, Kashmir, which India has attributed to Pakistani militants, India has revoked visas for Pakistani nationals, closed the Attari Integrated Check Post, and suspended the Indus Water Treaty, escalating tensions. In response, Pakistan has suspended all trade with India, closed its airspace to Indian airlines, shut the Wagah border, and formally suspended the 1972 Simla Agreement that governed diplomatic and territorial relations. These steps have stopped nearly all trade, which had already declined to less than $500 million by early 2025, and disrupted regional flight operations, raising costs for Indian airlines. The closure of the Attari border also halts cross-border trade valued at nearly Rs 3,900 crore. Both countries have issued strong warnings, with Pakistan declaring that any attempt by India to divert Indus river waters would be seen as an 'act of war.' The situation has heightened fears of deeper conflict between the nuclear-armed neighbors as diplomatic and economic ties deteriorate.