EU calls for India Pakistan restraint amid rising tensions after Pahalgam terror attack
Team Finance Saathi
03/May/2025

What's covered under the Article:
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EU and US call for restraint from India and Pakistan amid rising tensions after Pahalgam terror attack
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India announces strong retaliatory measures including suspension of Indus Waters Treaty and land trade routes
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Pakistan reacts by closing airspace and trade routes, escalating diplomatic and economic standoff
The European Union (EU) has stepped into the ongoing diplomatic and military standoff between India and Pakistan following the April 22 Pahalgam terror attack that claimed 26 lives. The attack, which Indian authorities claim had cross-border linkages, has prompted India to take a series of strong retaliatory measures, and tensions are rapidly escalating between the two nuclear-armed neighbours.
EU’s Statement and Diplomatic Outreach
EU High Representative for Foreign Affairs Kaja Kallas expressed alarm over the rising tensions. In a post on X (formerly Twitter), she said:
“Rising tensions between India and Pakistan are alarming. I urge both sides to show restraint and pursue dialogue to ease the situation. Escalation helps no one.”
Kallas made this statement after holding separate conversations with India’s External Affairs Minister S Jaishankar and Pakistan’s Deputy Prime Minister Ishaq Dar.
Jaishankar responded positively, noting:
“Good to speak with EU HRVP @kajakallas this evening. Discussed the Pahalgam terrorist attack. Welcome European Union's strong condemnation of terrorism in all forms and manifestations.”
This diplomatic exchange signals international concern over the fragile peace in South Asia and a global desire to avoid further escalation.
US Also Calls for Dialogue
Just two days prior, US Secretary of State Marco Rubio also reached out to both nations, urging calm and cooperation. He held phone calls with Pakistan Prime Minister Shehbaz Sharif and India’s External Affairs Minister S Jaishankar.
Rubio’s engagement followed reports that India might launch retaliatory actions for the Pahalgam attack, which Indian intelligence links to terror groups operating from across the border in Pakistan.
India's Response to the Terror Attack
Prime Minister Narendra Modi, in a high-level defence meeting, gave the Indian Armed Forces "complete operational freedom" to determine the mode, targets, and timing of the response. According to sources:
“It is a national resolve to deal a crushing blow to terrorism.”
India has so far taken several non-military but significant punitive steps:
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Suspension of the Indus Waters Treaty, a historic agreement on sharing river waters between India and Pakistan.
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Closure of the Attari land border, the only operational land trade route between the two countries.
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Downgrading of diplomatic ties, recalling diplomatic staff and reducing engagement.
These actions reflect New Delhi’s shift towards a zero-tolerance stance against terrorism and perceived cross-border provocations.
Pakistan’s Countermeasures and Escalation
Pakistan has responded forcefully, closing its airspace to Indian airlines and suspending all bilateral trade, even trade routed through third-party countries.
Furthermore, Islamabad rejected India’s suspension of the Indus Waters Treaty, warning that:
“Any move to stop the flow of water will be seen as an act of war.”
This stark warning marks an escalation in rhetoric and diplomatic posture, with potential implications for both security and environmental stability in the region.
Why the Pahalgam Terror Attack Matters
The Pahalgam attack, carried out in the picturesque region of Jammu and Kashmir, has rekindled fears of a new phase of cross-border terrorism. India has maintained that terror elements based in Pakistan were directly involved. Investigations are ongoing, but the public and political pressure within India is mounting for a strong, visible response.
International Stakes in South Asia Stability
Given the nuclear capabilities of both countries and their strategic roles in Asia, the international community – including the EU and the US – are paying close attention.
Multinational corporations and governments worldwide are particularly concerned about:
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The potential economic fallout of a prolonged standoff.
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Disruption to regional trade routes.
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Destabilisation of ongoing geopolitical alliances, especially in relation to China and the Indo-Pacific strategy.
Diplomatic Backchannels in Motion
Despite the aggressive tone of public statements, diplomatic backchannels are reportedly active. Trusted mediators including the United Nations, EU diplomats, and regional allies like UAE and Saudi Arabia may attempt to de-escalate the current situation.
Future Possibilities and Challenges
If tensions continue to rise, there are several scenarios that could unfold:
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Limited military engagement, such as surgical strikes or targeted air operations, similar to previous incidents like the Balakot airstrike in 2019.
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Continued economic isolation of Pakistan by India through trade restrictions and international lobbying.
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Joint counter-terrorism dialogues under international mediation, though currently unlikely given the political climate.
Regardless of the outcome, the Pahalgam terror attack has once again exposed the fragility of peace in South Asia, where decades-old grievances and unresolved disputes can quickly reignite hostilities.
Conclusion
The European Union’s intervention, following that of the United States, is a clear sign that global powers are wary of another flashpoint in an already volatile world. While India continues to assert its right to self-defence and hold cross-border terror accountable, the call for restraint and dialogue becomes increasingly urgent.
As of now, the region stands on edge, with decisions in the coming days likely to determine whether the crisis escalates or is diffused through diplomacy.
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