A prolonged tension between India and Pakistan may cause uncertainty over the economies of Bangladesh and other south Asian countries, economists and experts say.
"If the present situation escalates further it will definitely impact negatively on the economies of the region, including Bangladesh," Dr Mostafizur Rahman of the Centre for Policy Dialogue (CPD) told the FE on Wednesday.
Tourism and travel-related businesses will face the immediate impact, he said, adding the closure of flights by airlines will affect business.
But Dr Rahman felt the possibility of long-term war is slim as both India and Pakistan know their economies will be hit hard if a full-scale war takes place.
Ambassador Humayun Kabir noted that the conflict between these two nations would cause "serious harm" to the economic integration of South Asia, which has exhibited high growth prospects in recent years.
He also noted since Bangladesh is part of the South Asian region, it will also feel the heat if foreign investors will consider the region unstable and will switch to other parts of the world.
Professor Imtiaz Ahmed of international relations department of Dhaka University argued that Bangladesh should take initiative with other South Asian nations like Sri Lanka and Nepal to mitigate the tension between India and Pakistan.
Escalation of tension between these two nuclear-armed countries will cost many lives and will ruin the economic prospects of this region, he added.
