In the days since, tensions have risen dangerously between India and Pakistan, which have fought two of their three wars over Kashmir.

In response, Pakistan also announced shutting its airspace to all Indian airlines and suspended trade with New Delhi including through third countries. Islamabad also rejected India's suspension of the Indus Waters Treaty and said any measures to stop the flow of water belonging to Pakistan under the pact will be seen as an "act of war".

India and Pakistan's reciprocal actions following the killing of 26 men by suspected militants at a tourist spot in Kashmir are set to further curtail trade, which has more than halved since 2018, trade analysts and exporters said.