Tensions with India Lead to PSX Decline

The Pakistan Stock Exchange (PSX) experienced a significant downturn, losing over 2,000 points due to rising tensions with India after a terror attack in Jammu and Kashmir. Uncertainties about potential military strikes and diplomatic escalations fueled market anxieties, causing widespread concern in business sectors.

The Pakistan Stock Exchange (PSX) faced a sharp decline on Wednesday, driven by increasing tensions with India following a terror attack in Jammu and Kashmir's Pahalgam, which resulted in the death of 26 people. Fears of potential military action by India have sent ripples through the market.

On Tuesday, Information Minister Ataullah Tarar heightened market anxiety by disclosing credible intelligence pointing to possible military strikes by India within 24-36 hours. This, coupled with Prime Minister Narendra Modi granting military leaders operational freedom to plan a response, further fueled investor fears.

Market experts, including Yousuf M Farooq and Fatima Bucha, noted the severe impact of geopolitical uncertainty on investor sentiment. Business leaders such as Atiq Mir expressed concerns over the broader economic repercussions. Adding to the strained relations, India's measures following the terror attack include diplomatic downgrades and the suspension of longstanding agreements.

(With inputs from agencies.)