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Karachi stock exchange: Pakistan's stock market crashes due to India's action - crores of rupees lost: Pakistan Stock Exchange (PSX) is witnessing a huge decline for the last 2 days. According to the information given on the website of Pakistani newspaper Dawn, on Wednesday, the KSE-100 index closed at 117,226, falling 1,204 points. On the other hand, it opened with a huge decline on Thursday. PSX has seen a sharp decline of 2.1%. As soon as the KSE-100 index opened on Thursday, it fell 2,485 points to 114,740, i.e. a decline of about 2.12%.
After the horrific terrorist attack in Pahalgam, Jammu and Kashmir on April 22 (in which 26 people lost their lives), the Indian government has announced several tough measures against Pakistan. The Ministry of External Affairs announced these decisions after a meeting of the Cabinet Security Committee (CCS) on Wednesday night.
Following these decisions, the Pakistan Stock Exchange (PSX) recorded a huge decline on Thursday morning, while India's stock markets showed signs of initial caution. India's diplomatic aggression has started to have a direct impact on Pakistan's economy. The movement in the markets shows that this has become a strategy that affects not just diplomacy but also the economic front. This decline increased further after the IMF reduced Pakistan 's growth rate to 2.6% and Fitch's report expressed concern about the weak rupee, political uncertainty and tension in Kashmir. What did the IMF do: The IMF reduced Pakistan's GDP growth for FY25 from 3% to 2.6%, which weakened investor confidence. Apart from this, a warning from Fitch has also been issued. Fitch Ratings warned that the rupee could fall to ₹285/$ by June and ₹295/$ by the end of FY26. Rising tensions after Pulwama incident: Concerns about growing instability and terrorist incidents in Indian Kashmir have made investors cautious. Trump's 'unclear' statement on tariffs: President Donald Trump's statement that tariffs on China will be 'reduced significantly, but not to zero' has dampened market expectations. Which stocks saw the biggest decline United Bank Ltd Hub Power Habib Metropolitan Bank Mari Energies Engro Holdings These five companies alone pulled the index down by 526 points. Trading volume and value have also declined. Volume: 605.17 million shares, down 18.31%. Trade value: Fell 9.05% to ₹27.76 billion Pakistani rupees. The World Bank has warned Pakistan that it must move beyond mere stabilization to solid and sustainable growth. If reforms are delayed or policies are not flexible, the recent steps taken may go waste. Overall, this fall in Pakistan 's stock market has come from the growing tension of investors and reduction in economic estimates. If political tensions and economic data do not improve, further weakness can be seen in the market.
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