India also has a long-standing policy of refusing to allow foreign mediation when it comes to the status of Muslim-majority Kashmir - a disputed region claimed by both India and Pakistan in its entirety - which has been at the center of the latest conflict with Pakistan and which India regards as a strictly internal matter.

The recent military escalation with arch-rival India won't have a large fiscal impact on Pakistan and can be managed within the current fiscal space, with no need for a new economic assessment, Pakistan's Finance Minister said in an interview with Reuters on Monday.

By Shivam Patel, Aftab Ahmed and Tariq Maqbool NEW DELHI/ MUZAFFARABAD, Pakistan (Reuters) -The Indian military sent a "hotline message" to Pakistan on Sunday about violations of a ceasefire agreed this week and informed it of New Delhi's intent to respond if it was repeated,