Pahalgam Terror Attack Aftermath

The Terror Attack

On 22nd April, 2025, a terrorist attack took place at the tourist spot in Baisaran Valley near Pahalgam in the Indian-administered Jammu and Kashmir, killing around 26 people, all male, with over 20 others injured, with most of the victims being Indian tourists including an Indian Navy officer, and a foreign national from Nepal. According to the survivors, the terrorists, before killing the men, asked for their religion, and were also asked to recite the Islamic verse of Kalima to identify if they were muslims or not. This attack was one of its kind, and said to be the gravest one after the terrorist attacks of 26/11 in Mumbai. This attack not only incited massive outrage throughout the country but also caught the global eye. With India’s stance against terrorism, many countries sided with it to stand with India, offering their help and prayers.

Immediate Reactions and International Response

After the attack, the Indian government was on immediate planning, with the Prime Minister of India, Narendra Modi, cutting short a two-day visit to Saudi Arabia and returning to New Delhi early, alongside the Union Home Minister, Amit Shah, who also arrived in Srinagar and conducted a meeting with top security officials. The government also later notably admitted that a security lapse had occurred, revealing that Baisaran Valley had been opened for tourists two months ahead of the scheduled time without notifying security forces, a factor which facilitated the attack.

Escalation between India and Pakistan

The act led to highly escalated situations between India and Pakistan. Since both are nuclear-equipped states, the issue was of concern for global powers, as the two countries have not had the most friendly relations in the past. India, as a response, suspended the Indus Water Treaty with Pakistan, affecting its water security and raising diplomatic concerns. India's suspension of the Indus Water Treaty was perceived by Pakistan as an ‘act of war’, so in return, it suspended the Shimla Agreement.

In response to the attack, the Indian Prime Minister granted the Indian armed forces “complete operational freedom” to decide on the time, targets, and the methods of any response to the attack.

India has had a long history of trying to normalise the situation in the state of Kashmir in relation to the potential threat to its people from militants and Pakistan. India resorted to promoting tourism and prosperity in the state of Kashmir, or say, India-administered Kashmir. However, the question is whether the portrayal of peacefulness has also led to underestimating security risks in Kashmir. While the Indian government has emphasized its stand on claiming the whole state of Jammu & Kashmir as an integral part of India, administratively, the situation is not entirely in India’s favor, or even control. The PoK (Pakistan Occupied Kashmir) is still a crucial element for India to actually back its claim of having the entirety of Kashmir as a part of India.

Operation Sindoor

Eventually, on May 9th, India launched Operation Sindoor, targeting sites that were used for terror-related activities and allegedly executing over 100 terrorists by precision air strikes. While Operation Sindoor was intended to deter Pakistan and was deemed non-escalatory, in the days that followed, both countries carried out strikes at military bases across the border. Furthermore, in a shocking turn of events, even though India only targeted the terrorist sites in the state of Pakistan, meaning to execute them, Pakistan, in retaliation, conducted multiple air strikes for multiple days in areas including not only Kashmir but also in Punjab and Rajasthan. Pakistan’s act of carrying out air strikes for multiple days after India executed the terrorists in Pakistan raises questions about Pakistan’s stand on terrorism, and the actions seem to be endorsing it.

As part of its escalatory matrix against Pakistan for the terror attack in Pahalgam on April 22, India is considering two specific moves aimed at curbing financial flows that aid the neighbour fund terror activities.

The first is to make a concerted effort to try and bring back Pakistan into the ‘grey list’ of the Financial Action Task Force (FATF), the global money laundering and terror financing watchdog.

Pakistan was put in the ‘grey list’ in June 2018, and faced “increased monitoring” till it was removed in October 2022. Being in this list adversely impacts FDI and capital flows as businesses have to undertake enhanced due diligence. Government officials said this had helped curtail illicit fund flows from Pakistan into India, especially into J&K.

The second is to raise objections to the International Monetary Fund’s (IMF’s) continued financing of a $7-billion aid package that commenced in July 2024, citing diversion of funds by Pakistan for nefarious activities and terror attacks.

For India, the FATF had flagged the risk from terrorist groups in its mutual evaluation report in September 2024. The “most significant” terror threats seem to be related to the Islamic State or al-Qaeda linked groups active in and around Jammu and Kashmir.

The Operation Sinddor conducted by India was a strong statement given by the Indian government in response to the act of terror that happened in Pahalgam. It not only emphasized India’s stand against terrorism but also was a message to the whole world, displaying India’s capabilities in modern warfare to defend itself and take measurable, rapid action.

It was also reported that multiple casualties have been endured on both sides of the border, but eventually, with the air strikes India held to destroy Pakistan’s military infrastructure in retaliation for the drone attacks on civilian areas by Pakistan, the tensions decreased, and the Operation Sindoor was said to be a success for its purpose.

References

• ‘Act of war’: What happened in Kashmir attack that killed 26 tourists?
• Pahalgam terror attack: Pakistan urges Muslim countries to impress upon India to deescalate tensions
• Militants kill at least 26 tourists at a resort in Indian-controlled Kashmir
• India inflicted heavy losses to Pakistan military, terrorists during Operation Sindoor: DGMO
• Post Pahalgam terror attack: India works to throttle Pakistan terror funding, get it back in watchdog FATF ‘grey list’