Pakistan stock market crashes! The KSE-100 index in Pakistan has plunged over 7,100 points, approximately 6%, between April 23 and April 30, following the terrorist attack in Pahalgam that killed 26 people. This market decline is a reflection of the heightened tensions between India and Pakistan.
The index witnessed a substantial single-day decrease of 3.09% on April 30, dropping 3,545 points to close at 111,326.57, marking its most significant decline in recent periods. Major stocks including LUCK, ENGROH, UBL, PPL, and FFC contributed significantly to the downturn, collectively causing the index to fall by more than 1,100 points, according to an ET report.
Subsequently, on May 2, the market showed signs of recovery, rising by 2,785 points or 2.5% to 114,119. However, experts suggest this upturn might be temporary unless the diplomatic situation between the neighbouring countries improves.
The terrorist attack on April 22 prompted significant countermeasures from India. These included the suspension of the Indus Waters Treaty, closure of the Integrated Check Post at Attari, reduction in diplomatic personnel at High Commissions, and authorisation for military forces to determine their response strategy.
Prime Minister Narendra Modi has granted complete discretion to senior defence officials regarding their response methods, including the selection of targets and tactical approaches.
The Indian Army launched swift counter-responses to several ceasefire breaches along the Line of Control (LoC), particularly near Kupwara and Poonch districts during the nights of April 26-27 and April 27-28. The Pakistan Army’s small arms fire was met with precise retaliatory action, according to defence sources.
Intelligence reports indicate heightened Pakistani military presence, with additional air defence systems and artillery units stationed close to the Indian frontier.
A hotline discussion between the Directors General of Military Operations of both nations took place this week regarding the ceasefire violations. Indian officials reportedly delivered a strong admonition to Pakistan regarding its continued provocative actions.
In a separate development, Pakistan’s Ambassador to the United States, Rizwan Saeed Sheikh, sought President Donald Trump’s intervention to reduce tensions. According to Newsweek, the ambassador emphasised Kashmir’s significance as a critical international conflict zone and requested Washington’s mediation.
