Following India’s Operation Sindoor—precision strikes on nine terror camps in Pakistan and Pakistan-occupied Kashmir (PoK)—Pakistan’s stock market plunged dramatically.
The KSE-100 index dropped over 6,200 points (6%) in early trading on Wednesday, reflecting investor panic amid rising geopolitical tensions.
-
The KSE-100 index hit a low of 112,076.38, triggering panic selling.
-
The Pakistan Stock Exchange (PSX) later went offline, displaying a message that it is “under maintenance until further notice.”
-
The crash followed overnight Indian air strikes targeting Jaish-e-Mohammed, Lashkar-e-Taiba, and Hizbul Mujahideen camps.
-
In contrast, Indian stock markets showed volatility but remained resilient, with the Sensex and Nifty swinging during the day.
Why Did It Crash?
-
Fear of escalation: The strikes and Pakistan’s retaliatory shelling at the LoC raised fears of full-scale conflict.
-
Investor uncertainty: Concerns about possible sanctions, international fallout, and economic instability in Pakistan.
-
Systemic vulnerabilities: Pakistan’s fragile economic fundamentals were already under stress, and this geopolitical shock exacerbated market sentiment.
