The Pakistan Stock Exchange (PSX) suffered a severe downturn on Wednesday as investors reacted to India’s overnight military strikes on nine terror-linked sites in Pakistan and Pakistan-occupied Kashmir (PoK) under Operation Sindoor. The Karachi-100 index nosedived 6,272 points (5.5%) in early trading, hitting a low of 107,296.64, compared to Tuesday’s closing level of 113,568.51.
Market Turmoil Following India’s Precision Strikes
The sharp decline in Pakistan’s stock market comes in the wake of India’s coordinated military operation, which targeted terror infrastructure linked to groups such as Lashkar-e-Taiba (LeT), Jaish-e-Mohammed (JeM), and Hizbul Mujahideen (HM). The strikes, conducted by the Indian Army, Navy, and Air Force, were aimed at eliminating terror hubs responsible for the April 22 Pahalgam attack, which claimed 26 lives.
Investor Panic and Economic Uncertainty
Since the Pahalgam terror attack, the KSE-100 index has shed 3.7%, reflecting growing investor anxiety. In contrast, India’s Sensex index has gained 1.5%, signaling confidence in the country’s economic stability. Analysts suggest that Pakistan’s economic vulnerability has been exacerbated by geopolitical tensions, leading to massive sell-offs in the stock market.
Global Reactions and Economic Fallout
International investors are closely monitoring the situation, with concerns over Pakistan’s fiscal stability and foreign investment prospects. A senior financial analyst in Karachi remarked, “The market reaction underscores the fragility of Pakistan’s economy amid rising geopolitical tensions. Investors are pulling out funds, fearing further escalation.”
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