The Pakistan stock market has seen a major fall of over 7,100 points since April 22, 2025, as tensions between India and Pakistan increased sharply after a terror attack in Pahalgam. This sell-off shows how rising political and military stress between both countries is affecting investor sentiment in the region.
Pakistan’s main KSE-100 index dropped nearly 6% in just one week. On April 30 alone, the index fell by 3,545 points or 3.09%, closing at 1,11,326.57. This was one of the biggest single-day falls in recent weeks. The fall was mainly due to big selling in major stocks like LUCK, ENGROH, UBL, PPL, and FFC, which together pulled the market down by over 1,100 points.
The sharp decline started after the deadly April 22 attack in Pahalgam, which killed 26 people. The attack was reportedly carried out by Pakistan-backed terrorists, and India has responded strongly at both diplomatic and military levels. The Indian government has suspended the Indus Waters Treaty, reduced staff at both countries’ embassies, closed the Attari check post, and given the Indian Army full freedom to decide how and when to respond to Pakistan.
Subsequently, ceasefire was reported to have been violated at the Line of Control (LoC), specifically in areas around Kupwara and Poonch. The Indian Army reacted to this, and top military officials of both countries communicated through a hotline to de-escalate the situation.
While the stock market in Pakistan bounced back by 2.5% on May 2 to a gain of 2,785 points to settle at 1,14,119, market experts cautioned that this rally may be short-lived. They predicted the market would struggle in the days to come unless India-Pakistan tensions ease.
This is also keenly observed by global players. The Ambassador of Pakistan to the US asked President Donald Trump to de-escalate the tensions, declaring Kashmir a global flashpoint and appealing to the US.
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Source: ET.
News Desk
