Share Market: After the Pahalgam attack of Jammu and Kashmir, Pakistan’s stock market has seen a huge decline. After the terrorist attack in Pahalgam in Jammu and Kashmir, India also took tough diplomatic steps. The effect of which is being seen on the Pakistani stock market.
Pakistan’s stock market continues to decline. Today PSX declined by 2.1 percent. Today, on Thursday, as soon as the Pakistan Stock Exchange Open, within five minutes of early trade, the benchmark KSE-100 index fell around 2.12 percent or 2,485.85 points to 114,740.29. According to a report by Pakistani newspaper ‘Dawn’, on Wednesday, the KSE-100 index fell 1,204 points to close at 117,226.
Why did Pakistan’s stock market fall?
This decline is being seen from India due to increasing tension from India and reduced GDP growth estimate for FY 2025 from 3 percent to 2.6 percent. In addition, the IMF has reduced Pakistan’s growth rate to 2.6 percent tax, weak rupee, political uncertainty and stress in Kashmir have also increased the apprehensions.
IMF action
This decline in Pakistan’s stock market is a sign of increasing stress in investors. In fact, the IMF has reduced Pakistan’s gross domestic product growth rate from 3 percent to 2.6 percent for FY 2025, which has weakened the trust of investors. If political stress and economic figures do not improve, then there may be more weakness in the market.
India’s political aggression impact on Pakistan’s economy
On April 22, 28 people lost their lives in a terrorist attack in Pahalgam, Jammu and Kashmir. After this, the Government of India has announced to take many strict measures against Pakistan. India’s diplomatic aggression is having a direct impact on Pakistan’s economy.
The stock market fell to 2500 points in 5 minutes.
There was a sharp response to the local stock markets when India suddenly suspended the decades -old Indus Water Treaty. Taking aggressive diplomatic steps, India closed the Wagah border, expelled Pakistani defense personnel and canceled the SAARC visa exemption for Pakistani citizens. In the first 5 minutes the index fell by about 2,565 points to 114,740.29, as investors reduced the risk between regional instability and possibility of potential retaliation. Talking about the current time, the Karachi Stock Exchange is trading at 1,15,960 points with a decline of 1,260 points, or more than one per cent.
Decline in these Pakistani companies
Shares of commercial banks declined by 699.02 points, oil and gas companies fell by 312.76 points, cement shares declined by 240 points, shares of investment banks/investment companies/security companies declined by 215.98 points and fertilizer companies fell by 215.57 points. Talking about the most damage companies, BWCL has fallen by 10 percent. On the other hand, AGL shares saw a decline of 8.40 percent. EFUG shares declined by 8.38 percent, GADT stocks 5.91 percent and POML shares declined by 5.38 percent.
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