Archana Shukla
India business correspondent

India is expected to mount pressure against further loans to Pakistan, as the International Monetary Fund (IMF) prepares to consider the next instalment of its $7bn bailout to Islamabad on Friday.

The IMF meeting comes as cross-border tensions between Pakistan and India have continued to rise, with overnight blackouts and India alleging Pakistan launched drones and missiles on its three military bases - something Islamabad has denied.

Vikram Misri, India’s foreign secretary, on Thursday said the country would be putting forward its views to the fund and added that the IMF board should look “deep within” and take into account how successful these bailouts have been over the past three decades.

The money is crucial for Pakistan’s cash-strapped economy which is just limping back from a prolonged period of high inflation and low growth.

While India can voice its concerns, its influence on decision making, experts say, could be limited. India is one of the 25 members on IMF board - representing Sri Lanka, Bangaldesh and Bhutan too.

Meanwhile, amid escalating tensions between the neighbours, World Bank president Ajay Banga met Prime Minister Narendra Modi on Thursday. The bank has ruled out intervening between the neighbours on India’s decision to suspend the Indus Waters Treaty (IWT) - a landmark water sharing agreement that governs how the Indus basin river water is used.

“There's no provision in the treaty that allows for suspension,” Banga told CNBC TV18 news channel. “It either needs to be gone, or replaced by another one."

He said the bank's role in the treaty is just of a facilitator.

BBC Urdu

Five people, including a newborn, have been killed in firing and shelling in Pakistan-administered Kashmir overnight, Pakistani police tell BBC Urdu.

They said the shelling continued in several districts until 04:00 local time on Friday (23:00GMT on Thursday) along the Line of Control, the de facto border dividing Kashmir between the neighbours.

On Thursday, Pakistan had said that 31 people had been killed in Indian air strikes and shelling since early Wednesday.

The latest deaths reported from Pakistan-administered Kashmir would take the overall toll to 36.

Image source, Getty Images

While Pakistan Super League matches are moving to UAE, cricket fans are also wondering what will happen to the current season of the Indian Premier League (IPL).

On Thursday night, a match between Punjab Kings and Delhi Capitals in Dharamsala was stopped midway and spectators were asked to evacuate the stadium. Authorities blamed a floodlight failure. The decision came even as people in some other cities in northern and western India reported hearing sirens and blackouts had been imposed.

A match between Punjab Kings and Mumbai Indians that was supposed to be played at Dharamsala on Sunday was earlier shifted to Ahmedabad in Gujarat.

Some news outlets have reported that the Indian cricket board might consider suspending the tournament, but this has not been confirmed yet.

The tournament was scheduled to end on 25 May.

Matthew Henry
BBC Sport journalist on BBC Radio 5 Sports Extra

Image source, AFP

The Pakistan Super League (PSL) is moving the remaining matches of the season to the United Arab Emirates amid the ongoing tensions with India.

Earlier on Thursday, the match between Peshawar Zalmi and Karachi Kings, due to be held in Rawalpindi, was postponed after Pakistan's military said Indian drones were destroyed in various Pakistan cities.

A Pakistan Cricket Board official told BBC Sport one drone misfired and led to an explosion in the street behind the stadium in Rawalpindi. The BBC has been unable to verify these claims.

The PSL had been looking at all options for the remainder of the season, including halting the tournament for a number of weeks.

The exact schedule for the rest of the tournament, including dates and venues in the UAE, is yet to be confirmed.

Read the full story here.

Image source, Getty Images

India's ambassador to the US Vinay Kwatra has described the country's actions against Pakistan as a "war against terrorism" in an interview with CNN on Thursday.

He reiterated India's stand on Pakistan being the "original escalator" of tensions and said that Delhi was only responding to Islamabad's actions. India has blamed "Pakistan-based terrorists" for a deadly attack on tourists in April that killed 26 civilians - Islamabad has denied any links.

When asked by the hosts whether India was "at war" with Pakistan, Mr Kwatra did not give a clear answer but when pressed, he said India was "at war with the terrorists".

He was then asked if it was possible for tensions to escalate to the level of a nuclear war, given that both countries have nuclear weapons, Mr Kwatra responded, "That's for you to ask Pakistan."

Pakistan's ambassador to the US is expected to appear for a televised interview with CNN in the coming days.

Anbarasan Ethirajan
South Asia Regional Editor

Image source, Getty Images

As the ongoing India-Pakistan crisis takes a dangerous turn, nations around the world are urging calm.

The initial thinking was that after India launched air strikes and with Pakistan claiming to have shot down several Indian jets (a claim Delhi has not confirmed), both sides could claim “victory” and de-escalate.

But there’s a danger that any protracted tit-for-tat attacks could lead them to a far more damaging prospect.

During past conflicts, it was the US and a few other global powers which put pressure on Delhi and Islamabad to bring the situation under control and de-escalate.

Now passions are running high and the nationalist rhetoric has reached a crescendo on both sides and the neighbours are closer to war than in recent decades.

Unless Washington gets more involved, Islamabad and Delhi may continue with their accusations and counter-accusations.

Gulf states like Qatar, Saudi Arabia and the United Arab Emirates, which have close ties to both the countries, could step up their mediation efforts.

While the Donald Trump administration’s priorities are more about tariffs, China and Ukraine-Russia, it may require a concerted attempt by the international community to lower tension between the two nuclear-armed rivals.

Image source, Getty Images

Chief Minister Omar Abdullah has arrived in the city of Jammu in Indian-administered Kashmir.

Abdullah said he was there to take stock of the situation after last night’s "failed Pakistani drone attacks" directed at Jammu and other parts of the region.

Officials told the Press Trust of India that one woman was killed and two of her family members injured after the heavy shelling in areas near the Line of Control - the de facto border that separates Kashmir between the South Asian neighbours - in Uri district.

Video footage from the region claimed to show damage to several shops and houses in last night's shelling. BBC has not been able to verify them.

On Thursday, India said 16 people, including three women and five children, had died due to Pakistani firing since Wednesday morning.

All private and government schools in Indian-administered Kashmir are closed today.

Pinaki Chakraborty
Reporting from Delhi

India's benchmark indices, the Nifty and the BSE Sensex, opened lower on Friday morning. The Nifty 50, which tracks the country's top 50 publicly traded companies, was down more than 200 points, while the Sensex fell by over 600 points.

Since the 22 April attack in Pahalgam, the Nifty and Sensex have been showing mixed trends, falling and rising often.

But Friday's opening hours saw a sharp fall and the markets opened in the red after continued escalation of tensions between India and Pakistan overnight.

The BBC's Devina Gupta reported from Srinagar in Indian-administered Kashmir in the middle of a blackout on Thursday night.

• Indian media reports say that Defence Minister Rajnath Singh will hold a meeting with the chiefs of the three armed forces later today.
• Saudi Arabia's junior foreign minister is expected to land in Islamabad today after an unannounced visit to India on Thursday. India's Foreign Minister S Jaishankar said he had a "a good meeting" with the minister and "shared India's perspectives on firmly countering terrorism".

• Omar Abdullah, chief minister of Indian-administered Kashmir, is visiting its southern city of Jammu after explosions and sirens were reported in the area last night.

Image source, Getty Images

Last night, India accused Pakistan of attacking three of its military bases with drones and missiles, a claim which Islamabad denied.

The Indian Army said on Thursday it had foiled Pakistan's attempts to attack its bases in Jammu and Udhampur, in Indian-administered Kashmir, and Pathankot, in India's Punjab state.

Blasts were reported on Thursday evening in Jammu city in Indian-administered Kashmir as the region went into a blackout.

Pakistan's defence minister told the BBC they were not behind the attack. "We deny it, we have not mounted anything so far," Khawaja Asif told the BBC, adding: "We will not strike and then deny".

The strikes and incidents of shelling along the border have fanned fears of a wider conflict erupting between the nuclear-armed states.

Read more about what happened last night.

Image source, Getty Images

US Vice President JD Vance has said that a potential war between India and Pakistan would be "none of our business" during an interview with Fox News.

"We want this thing to de-escalate as quickly as possible. We can't control these countries, though," Vance said.

Vance was on a visit to India when the militant attack in Indian-administered Kashmir which killed 26 civilians took place.

The US has asked India and Pakistan to de-escalate tensions. President Donald Trump had earlier called rising tension between India and Pakistan a "shame".

A lot has happened in the past couple of days. Here's a quick recap:

• Last night, India's army accused Pakistan of launching drones and missiles on three military bases in India and Indian-administered Kashmir, which Islamabad denies
• Pakistan's defence minister denied Islamabad was responsible for any such attack, telling the BBC that when Pakistan does strike, "it will be known all over the world"
• On Thursday, Pakistan had said it shot down 25 Indian drones - Delhi did not comment on this specific claim but has said it targeted air defence in Pakistan in response to similar measures from Islamabad
• A day before that, India said it launched missile and air strikes on nine sites across Pakistan and Pakistan-administered Kashmir in response to a deadly April attack on tourists - Islamabad has denied any involvement in the attack
• Pakistan said only six locations were hit and claimed to have shot down five Indian fighter jets - a claim India has not confirmed
• There has been heavy shelling on both sides of the border

• The US, EU, UK and others have been urging both sides to de-escalate

Image source, Getty Images

Tensions between Delhi and Islamabad deepened last night as India accused Pakistan of firing missiles and drones at three of its military bases and cities – an allegation Islamabad has denied.

This comes two days after India launched air strikes in Pakistan and Pakistan-administered Kashmir - Islamabad has said 31 people were killed.

Delhi has said the strikes were in response to a deadly militant attack on tourists in Indian-administered Kashmir, which it has linked to Pakistan – Islamabad has denied this.

Sixteen Indians have also died in cross-border shelling by Pakistan.

Stay with us as we bring you all the updates.