Pakistan Stock Market: "WE'LL BE BACK SOON" — PSX Website Down For Maintenance As Karachi Index Falls Amid Political Tensions

Pakistan Stock Exchange: The Pakistan Stock Exchange (PSX) opened sharply lower on Thursday as geopolitical tensions between India and Pakistan escalated following a deadly terror attack in Pahalgam, India, which claimed 26 lives.

In response to the attack, India imposed a series of tough diplomatic measures against Pakistan.

As trading began, the PSX benchmark KSE-100 index plunged by 2.12%, losing 2,485.85 points to reach 114,740.29 within just the first five minutes.

However, the Pakistan Stock Exchange (PSX) website is currently undergoing maintenance. Visitors are met with a notice stating, "WE'LL BE BACK SOON. PSX website is under maintenance until further notice. Thank you for your patience. You can still contact us at itss@psx.com.pk."

Investor sentiment was further shaken by an earlier drop on Wednesday after the International Monetary Fund (IMF) downgraded Pakistan’s GDP growth forecast to 2.6%. Fitch Ratings also raised concerns about the country’s weakening currency, political instability, and ongoing unrest in Kashmir.

Also Read: 'Time To Turn Terror Homes Into Rubble': PM Modi Confirms Strongest Action After Pahalgam Terror Attack

India's Action Post Pahalgam Attack

India’s Ministry of External Affairs announced several significant steps, including the suspension of the Indus Waters Treaty, the immediate closure of the Wagah-Attari border, and the cancellation of visa exemptions under the SAARC Visa Exemption Scheme for Pakistani nationals.

Those already in India under this scheme were ordered to leave within 48 hours.

In a further diplomatic blow, India and Pakistan will both expel their respective military, naval, and air advisors from each other’s high commissions.

The overall strength of diplomatic staff at the high commissions will also be reduced to 30 from 55 by May 1, 2025.

These developments have increased uncertainty in the region, prompting strong reactions from the financial markets and raising concerns about the broader economic impact.