Tensions between India and Pakistan have been high since a deadly attack in Pahalgam on April 22, which claimed 26 people.

Pakistan carried out a second missile test in three days on Monday after saying it was preparing for an incursion by India, as Moody's warned that the standoff over violence in Kashmir could set back Islamabad's economic reforms.

Pakistan has test-fired a ballistic missile as tensions with India have surged over last month's deadly attack on tourists in the disputed Kashmir region.