Pakistan stock market takes a hit after India’s action post Pahalgam attack

Pakistan’s stock market took a sharp dive on Thursday after India responded strongly to the recent terror attack in Pahalgam. This sudden move rattled investors and pushed the benchmark index into a free fall.

The KSE-100 index, which tracks the performance of top companies listed on the Pakistan Stock Exchange, fell by over 2,000 points during the day. According to Dawn, a leading Pakistani newspaper, the index was already down by 1,086 points (0.93%) around 11:13 am, resting at 116,139.63. Things worsened by the afternoon, with the index plunging further—down 2,116 points (1.81%)—settling at 115,109.22 around 2:56 pm.

This crash comes at a time when Pakistan’s economy was slowly finding its feet after a prolonged crisis. Economic observers say the country can hardly afford any new shocks, especially with global financial institutions like the IMF keeping a close watch.

The political tension between the two neighbours and concerns over economic stability have once again put Pakistan’s fragile market under pressure.