{"id":70663,"date":"2025-05-03T08:22:09","date_gmt":"2025-05-03T08:22:09","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/70663\/"},"modified":"2025-05-03T08:22:09","modified_gmt":"2025-05-03T08:22:09","slug":"pakistan-stock-market-meltdown-how-indias-pahalgam-response-wiped-out-over-7000-points","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/70663\/","title":{"rendered":"Pakistan Stock Market Meltdown: How India\u2019s Pahalgam Response Wiped Out Over 7,000 Points"},"content":{"rendered":"

\"pakistan<\/p>\n

Pakistan Stock Market Meltdown: How India\u2019s Pahalgam Response Wiped Out Over 7,000 Points (AI Generated Image)<\/p>\n

It’s not always the military might that makes or breaks a country, it’s very often the financial condition, the size of the economy, and its market that decides how it will be received on the global stage. Pakistan, which has been struggling with its finances for some time now, is sinking further as its stock markets have lost over 7,000 points since the Pahalgam terror attack<\/a>. The ghastly terror attack that saw 26 innocent people lose their lives is proving to be a costly affair for Pakistan as the KSE-100 index plunged by more than 7,100 points\u2014equivalent to nearly six per cent\u2014between 23 April and 30 April 2025.<\/p>\n

The main reason for this massive fall is the fear of military action by India, spooking the investors. However, so far India has only taken diplomacy route to counter cross-border terrorism and isolate Pakistan. On the contrary, Pakistan has been violating the ceasefire, further escalating tensions on LoC. <\/p>\n

The Pakistan Stock Exchange saw its steepest single-day drop on April 30, when the benchmark index plunged 3,545 points \u2014 a 3.09% decline \u2014 closing at 111,326.57. The sell-off was driven by losses in major-cap stocks like Lucky Cement (LUCK), Engro Corporation (ENGROH), United Bank Limited (UBL), Pakistan Petroleum Limited (PPL), and Fauji Fertilizer Company (FFC), which together dragged the index down by over 1,100 points.<\/p>\n

Though the market staged a partial recovery on May 2, gaining 2,785 points (2.5%) to close at 114,119, analysts remain wary. Market veteran Arif Habib told ET, \u201cThis rebound is purely technical. Without a return to diplomatic normalcy, market volatility is likely to persist.\u201d<\/p>\n

India’s Tough Measures Post-Pahalgam <\/p>\n

India\u2019s tough diplomatic steps \u2014 such as suspending the SAARC Visa Exemption Scheme, Indus Waters Treaty, expelling Pakistani military attach\u00e9s, reducing diplomatic staff, and shutting down the Attari border \u2014 sent shockwaves through Pakistani financial markets. On April 24, the Karachi Stock Exchange\u2019s KSE-100 index tumbled over 2% within minutes of opening, dropping more than 2,500 points. Although it later clawed back some losses, the index still closed the day in the red.<\/p>\n

Prime Minister Narendra Modi has given the armed forces full autonomy to determine their response, including the choice of targets and strategy, following recent tensions. In the ensuing days, the Indian Army launched calibrated countermeasures against ceasefire violations near Kupwara and Poonch. <\/p>\n

Amid the escalation, a hotline call between the Directors General of Military Operations (DGMOs) of both countries ended with India delivering a stern warning to Pakistan. At the same time, Pakistan\u2019s Ambassador to the US, Rizwan Saeed Sheikh, urged President Donald Trump to step in diplomatically. In comments published by Newsweek, Sheikh warned that \u201cKashmir is a potential flashpoint for global instability,\u201d and appealed for US intervention to help ease tensions.<\/p>\n","protected":false},"excerpt":{"rendered":"Pakistan Stock Market Meltdown: How India\u2019s Pahalgam Response Wiped Out Over 7,000 Points (AI Generated Image) It’s not…\n","protected":false},"author":2,"featured_media":70664,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,35402,35403,24067,26635,35399,35398,35401,35400,16,15],"class_list":{"0":"post-70663","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-kse-crash","11":"tag-markets-news-times-now","12":"tag-pahalgam-terror-attack","13":"tag-pakistan-economy","14":"tag-pakistan-market-crash","15":"tag-pakistan-stock-market","16":"tag-psx-down-7000-points","17":"tag-psx-meltdown","18":"tag-uk","19":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114442937705708072","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/70663","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=70663"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/70663\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/70664"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=70663"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=70663"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=70663"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}