India, Pakistan Military Chiefs Speak After Ceasefire Brings Border Calm; Markets React Positively
New Delhi/Islamabad — May 12, 2025:
For the first time since a recent ceasefire was announced, the military operations chiefs of India and Pakistan held a conversation over the hotline on Monday, signaling a potential thaw in tensions after days of intense cross-border hostilities.
The discussion, which concluded at 5 PM, followed a fragile but largely successful ceasefire that brought relative calm to the Line of Control (LoC). Details of the conversation have not yet been disclosed by either side.
Following initial violations, no incidents of shelling or explosions were reported overnight, with the Indian Army confirming that Sunday marked the first peaceful night in recent memory. Despite the calm, several schools near the border remain closed as a precaution.
Ceasefire Brokered Amid U.S. Involvement
The ceasefire, which came into effect on Saturday in the Himalayan region, was first announced by U.S. President Donald Trump after four days of intense fighting and diplomatic engagement. The U.S. is reported to have played a key role in bringing both sides back to the negotiation table.
On Sunday, India sent a formal hotline message to Pakistan, expressing concern over ceasefire violations on the previous day. An Indian Army official warned that future infractions would prompt a response. However, Pakistan’s military denied any violations had occurred.
India’s Ministry of External Affairs confirmed in a statement that the Director Generals of Military Operations (DGMOs) from both countries would speak at 1200 hours (0630 GMT) on Monday. Pakistan has not officially commented on the outcome of the call or responded to media inquiries.
Escalation Followed Pahalgam Attack
Tensions had escalated earlier last week after India blamed Pakistan for a terrorist attack in Pahalgam that killed 26 tourists. Pakistan strongly denied involvement and demanded an impartial investigation.
In retaliation, India launched airstrikes on nine alleged terrorist infrastructure sites in Pakistan and Pakistan-Occupied Kashmir (PoK) on Wednesday. Pakistan responded with missile and drone strikes targeting Indian military installations and civilian areas, further deteriorating relations.
Markets Respond with Optimism
Amid easing tensions, financial markets in both countries showed signs of recovery. Pakistan’s benchmark share index surged nearly 9% on Monday, prompting a temporary one-hour halt in trading after three days of losses. Meanwhile, India’s Nifty index rose by 2.5% in early trading, bouncing back after a 1.5% drop over the previous three sessions.
On the financial front, Pakistan received a boost late Friday when the International Monetary Fund approved a $1.4 billion loan under its climate resilience fund and cleared the first review of its ongoing $7 billion economic program.
Political Reactions and Future Outlook
Islamabad has thanked Washington for facilitating the ceasefire and welcomed President Trump’s offer to mediate the long-standing Kashmir dispute. However, New Delhi has remained silent on U.S. involvement and has not endorsed third-party mediation.
India reiterates that Jammu and Kashmir is an integral part of the country and insists that all disputes with Pakistan must be resolved bilaterally.
Meanwhile, the opposition Congress Party, which had backed Prime Minister Narendra Modi after the April 22 attack, has called for a special session of Parliament to discuss the latest developments.