India on Wednesday said it had struck Pakistan with missiles, nearly two weeks after 26 people were killed by armed militants in the India-administered Kashmir valley.
At least 38 deaths were reported, with Islamabad saying 26 civilians were killed by the Indian strikes and firing along the border, and New Delhi adding at least 12 dead from Pakistani shelling.
Pakistan called the early-morning attack an "unprovoked and blatant act of war."
"We strongly condemn India’s cowardly action, which is a flagrant violation of the UN Charter, international law and established norms of inter-state relations," Pakistan's Ministry of Foreign Affairs said. "India’s reckless action has brought the two nuclear-armed states closer to a major conflict."
Pakistan's air force shot down five Indian jets, the country's Defence Minister told Reuters. The Indian army said at least three civilians were killed by Pakistani artillery fire along the de facto border that divides disputed Kashmir between the two countries.
'Act of war'
Nine sites in Pakistan and Pakistan-administered Kashmir were attacked as part of Operation Sindoor, India's Defence Ministry said.
New Delhi said the attacks were “focused and non-escalatory”, and no “Pakistani military facilities were targeted”.
“A little while ago, the Indian Armed Forces launched Operation Sindoor, hitting terrorist infrastructure in Pakistan and Pakistan-occupied Jammu and Kashmir from where terrorist attacks against India have been planned and directed,” it said.
Pakistani Prime Minister Shehbaz Sharif said five locations had been hit in the "cowardly" attack.
"Pakistan has every right to give a befitting reply to this act of war imposed by India and a befitting reply is being given," Mr Sharif's office said.
Residents in Mendhar and Poonch along the Line of Control in Jammu district were out on the streets as loud explosions were heard in the frontier towns after India's missile attack. One person was reportedly killed in Mendhar after heavy shelling.
India and Pakistan have fought three wars, while a three-decade armed insurgency has claimed the lives of tens of thousands of people.
A Pakistani military spokesman told broadcaster Geo that two mosques were among the sites hit by India. The Pakistani defence minister told Geo that all the sites were civilian and not militant camps.
He said India's claim that it was attacking terrorist camps "is false".
The offensive came as Iran’s Foreign Minister Abbas Araghchi was in the Pakistani capital Islamabad.
Pahalgham attack
Two weeks ago, 25 tourists and a pony-ride operator died after militants opened fire in the resort area of Pahalgam, known as a "mini Switzerland", in Indian-administered Kashmir on April 22. India blamed Pakistan for the attacks but Pakistan denied any involvement.
The Resistance Front, an extremist group, claimed responsibility for the brutal attack. India accuses Pakistan of backing militant groups in Kashmir, a charge denied by Islamabad.
Jammu and Kashmir is ruled by India and Pakistan in parts but has been claimed by both in its entirety since British colonialists left the subcontinent in 1947.
Kashmir has been in the grip of an armed rebellion against New Delhi’s rule, which has killed tens of thousands of people.
After the Pahalgam attack, India suspended all visas to Pakistani citizens and put a water treaty on "abeyance", depriving Pakistan of river water crucial for its irrigation. It also banned trade.
Pakistan in retaliation closed its airspace for Indian carriers and expelled Indian diplomats.
Calls for restraint
The UN said that Secretary General Antonio Guterres is "very concerned" about the Indian military operations. Mr Guterres called for "maximum military restraint from both countries".
"The world cannot afford a military confrontation between India and Pakistan," a UN statement said.
US President Donald Trump called the attacks a "shame". Speaking at the White House in Washington, Mr Trump said that "I just hope it ends very quickly".
Indian National Security Adviser Ajit Doval briefed US Secretary of State Marco Rubio shortly after New Delhi's strikes on Pakistan, AFP quoted the Indian embassy as saying.
Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, called on India and Pakistan to exercise restraint, de-escalate tension and avoid further escalation that could threaten regional and international peace, Wam reported.
Sheikh Abdullah also stressed the importance of heeding the voices calling for dialogue and mutual understanding to prevent military escalation, strengthen stability in South Asia and avoid further regional tensions.
UK politicians have also urged restraint, with Scotland's First Minister John Swinney and Labour MP Stella Creasy saying they were "deeply" concerned by the escalation in violence, while former Tory minister Lord Ahmad warned the "potential for war tonight is real", PA reported.
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Other workplace saving schemes
- The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
- Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
- National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
- In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
- Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5