Pakistan conducts a missile test amid escalating crisis with India.

Pakistan conducted a missile test today, Monday, for the second time in three days, stating it is preparing to counter India. At the same time, Moody's credit rating agency warned that the crisis related to violence in Kashmir could lead to setbacks in the economic reforms Islamabad is undertaking. Relations between the two nuclear-armed neighbors have deteriorated since militants killed 26 people on April 22 in an attack targeting Hindu tourists in Indian-administered Kashmir. The attack was the deadliest of its kind targeting civilians in India in nearly 20 years. India accused Pakistan of involvement in the attack, while Islamabad denied the allegations and claimed to have intelligence indicating that New Delhi plans to launch a military operation against it soon. Moody's agency reported that the crisis could harm Pakistan's $350 billion economy, which has been on the path to recovery after securing a $7 billion IMF bailout program last year and averting default risks. This comes two days after a Reuters report that India requested the IMF to review loans to Pakistan.