‘If the war drags on…’: Harsh Goenka flags economic ‘risks’ for Pakistan amid India-Pak tensions

RPG Enterprises Chairman, Harsh Goenka, in a social media post on May 10, outlined a list of economic risks which Pakistan has to face if the India-Pakistan conflict escalates into an even major stance of war. 

According to the latest development, India’s Foreign Secretary Vikram Misri on Saturday, May 10, said that India and Pakistan have agreed to stop firing action on land and air from 5 p.m.

“The DGMO (Director General of Military Operations) of Pakistan called DGMO of India at 15.35 hours earlier this afternoon. It was agreed between them that both sides would stop all firing and military action on land, air and sea with effect from 1700 hours IST,” said Vikram Misri.

Here are the seven risks for Pakistan

1. Economic collapse: Goenka highlighted how Pakistan’s economy will collapse as the nation is already running low on foreign exchange (forex reserves). Goenka also said that if the nation goes to war with India, the expenses for the same “will drain” their existing reserves. 

2. IMF bailout: The International Monetary Fund (IMF), a global lending agency’s deal with Pakistan will come under jeopardy in case a nation moves to go into war with India, as global lenders “hate” instability in the borrower nations.

The IMF is a 189-nation member organisation which works to maintain global monetary cooperation and secure financial stability in nations. The US-based lender extended a $1 billion lifeline to Pakistan’s economic reform programme under the Extended Fund Facility (EFF) arrangement.

“This decision allows for an immediate disbursement of around USD 1 billion (SDR 760 million), bringing total disbursements under the arrangement to about USD 2.1 billion (SDR 1.52 billion),” said the IMF.

3. China relations: The Chairman said that if Pakistan went to war against India, friendly nations like China would avoid “losing bets” supporting Pakistan. “Even Beijing avoids losing bets,” said Harsh Goenka. 

4. Civil unrest: A war with India is expected to bring civil unrest, like a rise in inflation, which, along with a war, can result in angry citizens in the nation, according to Goenka’s post on X.

5. Pakistan Army’s image: The RPG Group Chairman also said that a war with India, which has the third largest army in the world, will hurt the Pakistani army’s image in front of the world and its citizens. “Already unpopular,” said Goenka.

6. Terror backfire: The “extremists” who are hiding inside Pakistan can turn “rogue” in case Pakistan decides to go to war with India. Earlier on May 7, 2025, India executed its Operation Sindoor, which targeted nine terrorist bases across Pakistan and Pakistan-occupied Kashmir (PoK) in retaliation to the Pahalgam terror attack.

The situation escalated as Pakistan started shelling the border regions of India on May 8 and May 9, 2025.  

7. Global isolation: Going to war against India will create a “Global isolation” situation for Pakistan due to India’s relationships with major world nations.

Earlier on May 9, 2025, Harsh Goenka called Operation Sindoor not just a military response. He said that it was the voice of a wounded nation in retaliation for the Pahalgam attack, which claimed the lives of 26 people.

“Operation Sindoor wasn’t just a military response- it was the voice of a wounded nation rising with quiet resolve,” he said. 

India-Pakistan Ceasefire

Indian Foreign Secretary Vikram Misri on Saturday, May 10, announced that India and Pakistan have agreed to stop firing action on land and air from 5 p.m.

“The DGMO (Director General of Military Operations) of Pakistan called DGMO of India at 15.35 hours earlier this afternoon. It was agreed between them that both sides would stop all firing and military action on land, air and sea with effect from 1700 hours IST,” said Vikram Misri.

However, India did not call this agreement a “ceasefire”, so it can be considered more like a de-escalation effort from both nations.

Earlier on Saturday, India reportedly warned Pakistan that “any future act of terror will be considered an Act of War against India and will be responded accordingly.”

Read all Operation Sindoor-related news here