Pakistan carried out a second missile test in three days on Monday after saying it was preparing for an incursion by India, as Moody's warned that the standoff over violence in Kashmir could set back Islamabad's economic reforms.

India and Pakistan are scrambling resources both military and diplomatic to respond to a crisis triggered by a massacre in Indian-controlled Kashmir that has heightened fears of a conflict between the

A massacre in Indian-controlled Kashmir that has heightened fears of a conflict between India and Pakistan. Both countries have test-fired missiles in recent days, with diplomats from several other countries reaching out to urge the nuclear-armed rivals to exercise restraint.