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

The United States is stepping up pressure on India and Pakistan to avoid conflict in Kashmir after a tourist massacre in an Indian-administered area of the divided territory last week.