Pakistani Stock Market Crashes After India’s Tough Response to Pahalgam Attack
Following the deadly terror attack in Pahalgam, India took strong diplomatic and strategic actions against Pakistan.
image for illustrative purpose
The Pakistani stock market has suffered a major blow following strong actions taken by the Indian government in response to the recent terror attack in Pahalgam.
On Thursday, the Karachi Stock Exchange (KSE-100) fell sharply by 2.12%, dropping nearly 2,485 points to reach 114,740.29. This massive dip happened within the first five minutes of trading, as investors pulled out due to rising geopolitical tensions.
The attack in Pahalgam on Tuesday killed 26 tourists and left many injured. In response, India implemented several tough measures: it stopped the flow of Indus waters to Pakistan, expelled Pakistani diplomats, canceled visas, and closed the Wagah-Attari border. These actions triggered panic in Pakistan’s financial markets. Meanwhile, Kashmir remained under complete shutdown on Thursday as a mark of protest.
Tourists are now being evacuated from the region, while local hotels have offered free accommodation for up to 15 days to those stranded. The situation remains tense, with high pressure on both the region and the markets.
