Karachi: On Friday, April 25, the Pakistan Stock Exchange (PSX) website went temporarily offline, displaying a maintenance message—”We’ll be back soon”—prompting concerns among investors regarding the exchange’s digital infrastructure and stability. The unscheduled downtime comes at a time of heightened geopolitical tensions and market instability, exacerbating fears among traders and financial analysts.
Thursday’s trading session saw a sharp drop in the benchmark KSE-100 index, which plunged by 2.12 percent, or 2,485.85 points, to settle at 114,740.29. This decline followed a similar trend on Wednesday, with the market reacting to the growing fears of a regional escalation after a deadly terrorist attack in Pahalgam, India, which killed 26 tourists. The attack has further strained diplomatic relations between India and Pakistan, stoking fears of military confrontation and triggering panic selling across sectors.
In response, India’s Ministry of External Affairs announced a series of measures, including the suspension of the Indus Waters Treaty, closure of trade through the Wagah-Attari border, and the withdrawal of visa exemptions under the SAARC framework. The Indian government also expelled Pakistani military diplomats and suspended visa services. These actions, deemed “calibrated but firm” by Indian officials, reflect a shift in policy toward a more robust stance against cross-border terrorism.
Amid these tensions, investor confidence has been further rattled by the state of Pakistan’s economy. The International Monetary Fund (IMF) recently downgraded Pakistan’s GDP growth forecast to a meager 2.6 percent for the fiscal year, while Fitch Ratings highlighted concerns over the depreciation of the Pakistani rupee, political instability, and growing security risks, especially in Kashmir.
