Iran’s foreign minister is in Pakistan to try and mediate in the escalation between Islamabad and New Delhi after last month’s deadly attack on tourists in the Indian-controlled section of Kashmir.

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.

The April 22 terrorist attack in Kashmir inflamed a long-simmering conflict that could boil over into military confrontation.