Pakistan Stock Exchange Crashes 1,000 Points Amid India-Pakistan Tension

Tensions between India and Pakistan have spilled over into the monetary markets. Shares on the Pakistan Stock Exchange (PSX) plunged over 1,000 issues on Thursday as tensions with India escalated following the Pahalgam terror assault on 22 April 2025 that killed 26 civilians.

India answered by means of downgrading diplomatic ties with Pakistan, expelling army attachés, postponing the Indus Water Treaty of 1960, and closing down the Attari land-transit publish. Fresh at the heels of India’s retaliatory diplomatic measures, the KSE-100 index dropped by means of 1,086.51 issues to 116,139.63 by means of mid-morning.

Earlier in January this 12 months, the International Monetary Fund (IMF) reduce Pakistan’s financial expansion forecast added to considerations concerning the nation’s monetary outlook. In its newest replace, the IMF projected expansion of simply 2.6 according to cent for the present fiscal 12 months and 3.6 according to cent for the following. Inflation could also be anticipated to upward thrust with estimates at 5.1 according to cent and 7.7 according to cent for the present and subsequent 12 months.

The Pahalgam assault is the deadliest because the Pulwama incident in 2019 on the subject of casualties. Back then, on February 14, 2019, a suicide bomber focused a convoy of Indian safety forces at the Jammu-Srinagar National Highway in Pulwama district, killing no less than 40 CRPF group of workers.

In reaction to the Pulwama terror assault, the Indian Air Force performed an air strike on a terrorist camp in Pakistan’s Balakot area. India claimed the operation killed a number of terrorists and destroyed key coaching amenities.