The Pakistan Stock Exchange (PSX) faced a major decline today, with the index falling by more than 2,500 points.
The stock exchange saw investors hesitant, likely as a result of India’s suspension of the 1960 Indus Waters Treaty as retaliation for a deadly militant attack in Pahalgam. The attack, which happened on Tuesday afternoon, resulted in the deaths of 28 tourists.
In response, India downgraded diplomatic ties with Pakistan, expelled Pakistani diplomats, closed the Wagah-Attari border, and revoked visa exemptions for Pakistani nationals.
These developments have heightened investor concerns, leading to widespread panic selling on the PSX. Moreover, the market’s decline was further exacerbated by the International Monetary Fund’s recent downgrade of Pakistan’s GDP growth forecast.
Many finance experts think it will go down to 2.6% in light with Fitch Ratings’ recent concerns over the weakening rupee and political instability.
As the situation remains fluid, market participants are closely monitoring further developments. The PSX’s performance will likely continue to be influenced by the evolving geopolitical tensions for the near future.