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Pakistan Politics: Indo-Pak Conflict and its impact on market

• Early morning in Pakistan on Feb 26, 2019, Major General Asif Ghafoor, spokesperson of Pakistan Armed Forces informed public via twitter that an Indian aircraft intruded Pakistan's airspace in wee hours, staying 5-6 minutes but hastily escaped, following timely response by the Pakistan Air Force (PAF), with no casualties or damage.
• However, as per the statement of Indian Foreign Ministry, India struck the biggest training camp of Jaish-e-Mohammed (JeM) in Balakot, KPK Pakistan.
• India claimed that JeM group was responsible for a suicide bombing on Feb 14, 2019 that killed more than 40 Indian paramilitary soldiers in Pulwama in Indian Occupied Kashmir (IOC).
• In response to India’s intrusion, PAF carried out strikes in the early morning of Feb 27, 2019, across Line of Control (LoC) from within Pakistan airspace. During the action, Pakistan claimed that they shot down two Indian aircrafts and arrested one pilot.
• As per the Indian version, one PAF jet was shot down by Indian air force in an aerial engagement but India lost a MiG 21 in the combat, the ministry of external affairs said in yesterday’s press brief. India further added that the pilot was missing in action and that they were ascertaining the facts.
• Amidst escalating tensions, Air Canada, Qatar Airways, Emirates, Gulf Air, and Eithad have reportedly suspended flights to both countries temporarily. Further, both countries (India and Pakistan) also suspended their air operations for commercial flights (in some or all parts of countries). Operation of a bi-weekly cross-border train service (Samjhota Express) between both countries was also suspended.
• Pakistan Prime Minister Imran Khan in his yesterday’s speech reiterated his offer of peace with India. He said Pakistan is ready to cooperate with Indian counterparts into the investigation of suicide bombing on Indian Soldiers in occupied Kashmir.
• A day after India sent its fighter jets across the LoC to strike a JeM terror camp within Pakistan, Minister of External Affairs Sushma Swaraj, while on her visit to China, said that India wants to avoid any further escalation.
• S. President Donald Trump in a news conference in Vietnam today stated his hope for resolution between India and Pakistan. He further said that he received some ‘reasonably attractive news’ from India and Pakistan, and that the tension between both countries will end soon, as per news reports.
• UK Prime Minister, Theresa May has urged India and Pakistan to de-escalate tensions and to find a diplomatic solution to ensure regional stability. Furthermore, Turkey, and China have also called for same stance.
• Iranian Foreign Minister Mohammad Javad Zarif has also offered to mediate between India and Pakistan.
• German foreign ministry has also called on both Pakistan and India to de-escalate tensions.
• The Organization of Islamic Cooperation (OIC) condemned India's violation of the Line of Control (LoC) with Pakistan earlier in the day, urging both countries to exercise restraint.
• In latest developments, Prime Minister Imran Khan in a Joint Parliament session today announced to release the captured Indian pilot tomorrow, as a first step to open negotiations.
• As per Bloomberg news, Pakistan Foreign Minister earlier today said that he is willing to attend OIC meeting. He previously refused to participate in presence of Indian External Affairs Minister Sushma Swaraj.
• In latest developments, Prime Minister Imran Khan in a Joint Parliament session today announced to release the captured Indian pilot tomorrow, as a first step to open negotiations with India.
• After these diplomatic statements, we believe that the concerns of a full blown conflict between Pakistan and India looks unlikely.