The current situation in Pakistan’s financial markets is tense and uncertain, particularly following the recent Pahalgam terror attack in Kashmir. The Pakistan Stock Exchange (PSX) website is temporarily down, displaying a message that reads, “WE’LL BE BACK SOON, PSX website is under maintenance until further notice.” This disruption comes amid escalating tensions between India and Pakistan, leading to significant market fluctuations.

Market Response to Geopolitical Tensions

On Thursday, the PSX opened with a sharp decline, reflecting the market’s apprehension over the Indian government’s retaliatory actions following the tragic attack that resulted in the loss of 26 lives. The KSE-100 index initially plummeted more than 2%, shedding approximately 2,500 points in the first few minutes of trading. By 3 p.m., although there was a slight recovery, the index still showed a loss of 1,532.42 points, equating to a 1.31% decrease, underscoring the market’s sensitivity to any potential escalation in conflict.

Social Media Buzz and Public Reaction

The outage of the PSX website has sparked a flurry of reactions on social media platforms, particularly on X (formerly Twitter). Here’s a glimpse of the public sentiment:

• “Good way to stop stock sell.”
• “Pakistan has a stock exchange also?”
• “Panic attack on Pakistan Stock Exchange.”
• “It looks like a ticking time bomb.”
• “Pakistan has a stock exchange??? That’s newsworthy.”

These comments reflect a mixture of concern and surprise regarding the state of the stock market in Pakistan amidst rising geopolitical tensions.

Recent Volatility in the Pakistani Stock Market

Just a day prior, the Pakistan Stock Exchange witnessed a significant drop of 1,204 points following a dismal forecast from the International Monetary Fund (IMF), which projected a GDP growth rate of only 2.6% for FY25. This adjustment was attributed to ongoing fiscal risks and external vulnerabilities. Similarly, the Asian Development Bank (ADB) revised its GDP growth estimate for Pakistan down to 2.5%, much lower than the government’s target of 3.6%.

Diplomatic Measures from India

In response to the Pahalgam attack, India’s Cabinet Committee on Security (CCS) has implemented stringent measures. This includes the closure of the Attari border and a directive for Indian citizens in Pakistan to return by May 1. The Ministry of External Affairs (MEA) has also canceled all visas issued to Pakistani nationals under the SAARC Visa Exemption Scheme (SVES), demanding their departure within 48 hours. Furthermore, the personnel strength at High Commissions will be reduced from 55 to 30 starting May 1, 2025. Notably, the Indus Waters Treaty, a significant water-sharing agreement established in 1960, has been suspended for the first time.

The diplomatic responses come in the wake of the tragic attack on tourists in Baisaran, a scenic area often referred to as ‘mini Switzerland’. As the situation continues to unfold, the implications for both countries and their respective economies remain to be seen.

For ongoing updates on this developing story and insights into stock market performance, keep an eye on reliable news sources and financial analysis platforms.