Pakistan’s Defence Minister Khawaja Muhammad Asif.
| Photo Credit: Reuters

Pakistan’s Defence Minister Khawaja Asif on Monday (May 5, 2025) warned that India could carry out a military strike at any moment along the Line of Control in Kashmir.

Follow Pahalgam terror attack updates on May 5

Mr. Asif’s statement came as tension was running high between the two nuclear-armed neighbours in the wake of the Pahalgam terrorist attack.

“There are reports that India may strike at any point along the LoC… New Delhi will be given a befitting reply,” the minister told reporters in Islamabad.

Also read | Pakistan Defence Minister warns India it would strike any structure built on Indus River in violation of Treaty

He also accused Prime Minister Narendra Modi of “pushing the region to the brink of nuclear war for political gains”, reiterating allegations that “New Delhi was involved in terrorism in Khyber Pakhtunkhwa and Balochistan”.

“We had provided the UN with evidence in 2016 and 2017, including videos of India financing terrorism,” he claimed. He also linked the recent wave of terror in the two provinces to groups operating from Afghanistan, allegedly backed by India.

He said that Prime Minister Shehbaz Sharif asked for an international probe into the incident.

“Such a probe would expose whether India itself or any internal group was involved, and clarify the truth behind New Delhi’s baseless allegations,” Mr. Asif said.

Last week, Information Minister Atta Tarar had said that 24-36 hours were important, fearing a possible strike by India. However, the time passed and there was no action by India.

Meanwhile, Pakistan army chief General Syed Asim Munir on Monday reiterated his intention to respond with full force to protect the “national prestige and prosperity of his people”.

Also read | Pahalgam attack: Pakistan shuts ports for Indian ships after New Delhi bans imports from Islamabad

Ties between India and Pakistan plummeted following the Pahalgam attack that killed 26 people, mostly tourists.

India announced a raft of punitive measures against Pakistan including suspension of the Indus Waters Treaty, shutting down of the only operational land border crossing at Attari and downgrading of diplomatic ties following the terror attack.

Prime Minister Narendra Modi said India is committed to taking “firm and decisive” action against terrorists and their backers.

PM Modi also told the top defence brass that the armed forces have “complete operational freedom” to decide on the mode, targets and timing of India’s response to the attack.

Foreign tourists arrive in a resort in the Kurumba island in Maldives. File.
| Photo Credit: AP

Cash-strapped Maldives has signed a deal with a Dubai-based company to establish an $8.8 billion investment zone aimed at diversifying the tourism hotspot into a “financial freezone”, the government said Monday.

Three residential and office towers, a convention centre and hotels will form part of the Maldives International Financial Centre (MIFC), President Mohamed Muizzu’s office said in a statement.

“It will… position Male as the premier global business and financial hub in the Indian Ocean,” the statement said, adding it would allow the Indian Ocean archipelago to “diversify beyond tourism”.

The $6.5 billion economy of the Maldives has been facing foreign exchange shortages since the Covid-19 pandemic and has been warned of a potential foreign debt crisis.

The announcement followed an agreement signed late Sunday with MBS Global Investments, a company owned by wealthy Qatari Sheikh Nayef bin Eid Al Thani.

The MIFC zone will have no residency requirements and offer “no corporate tax, tax-free inheritance…and privacy” the statement added.

It is set for completion by 2030 with its projected revenue “to be well over $1 billion by the fifth year”, according to the government.

In February, the IMF said the Maldives required “urgent and stronger” fiscal consolidation to stabilise its troubled economy, despite a thriving tourism industry.

The upmarket holiday destination expects its economy to grow by five percent in 2025, but the IMF warned that the sunny outlook masked significant risks.

The tiny nation declined an International Monetary Fund bailout loan late last year, with the government instead announcing severe spending cuts.

Mr. Muizzu has taken a 50% pay cut, and introduced a mandatory 10% pay cut across most public sector jobs.

In September, the Maldives described its financial difficulties as “temporary” and said it had no plans to seek a bailout, despite warnings of a possible sovereign default.

The Maldives is on the frontline of the battle against global warming, which could raise sea levels and swamp the nation of 1,192 tiny coral islands scattered across the equator.

China and India are the two largest bilateral lenders. Beijing has pledged further funding since Mr. Muizzu’s 2023 election victory, with the president thanking China for its “selfless assistance” in providing development funds.

Mr. Muizzu was welcomed in New Delhi in October by Prime Minister Narendra Modi, who announced financial support to bolster the archipelago’s struggling economy.

Official data showed the Maldives’ foreign debt stood at $3.37 billion in the first quarter of 2024, equivalent to around 45% of GDP.

China accounted for about 20 percent of the external debt, while India held just under 18%.