Pakistan Stock Exchange Dips Over 1,000 Points After Pahalgam Attack, Website Faces Outage

The Pahalgam terror attack has created economic and diplomatic instability, causing shockwaves in India and Pakistan. The horrific incident, which killed 26 people, caused a sharp drop in the Pakistan Stock Exchange (PSX), indicating increasing tensions between the two countries.

In retaliation, India has initiated various diplomatic measures, such as suspending the Indus Waters Treaty and lowering interaction with Pakistan. These events have the potential to have long-lasting implications for regional stability and the sensitive balance of security, trade, and diplomacy between the two nations.

Pakistan Stock Exchange Experiences Biggest Fall

The Resistance Front attack, which was traced to Lashkar-e-Taiba, sparked outrage in India as well as a sudden economic slump. The PSX experienced a steep fall of more than 1,300 points, or around 1.10%, after the attack on April 23.

Pakistan Stock Exchange Website Goes Offline After India’s Response to Pahalgam Attack

The Pakistan Stock Exchange website went down shortly after India responded to the Pahalgam terror attack with new measures, including suspending the Indus Water Treaty. The market also saw a… pic.twitter.com/TXr2XdOCdG

— Katman (@MindoFact) April 24, 2025

The steep fall was reflective of investor unease at the growing tensions between India and Pakistan. Adding to the chaos, the PSX website crashed soon after the fall, showing a “maintenance” message. This technical glitch further served to indicate the disruption in the financial system.

India’s Swift Retaliatory Actions

In retaliation for the attack, India took a number of diplomatic actions meant to convey a strong message to Pakistan. One of these actions was suspending the Indus Waters Treaty, which had regulated water-sharing between the two countries for decades.

India also shut down important border crossings such as Attari-Wagah and suspended the SAARC Visa Exemption Scheme. These actions were part of India’s larger design to fight cross-border terrorism and give a strong message to Pakistan regarding its stern approach to national security.

Long-Term Diplomatic Consequences

India’s actions have far-reaching consequences for future diplomatic relations with Pakistan. Suspension of the visa scheme and the expulsion of Pakistani military advisors reflect India’s determination to safeguard its sovereignty.

These actions are likely to put more strain on relations and potentially impact trade and defense cooperation between the nations. India’s actions, although severe, are intended to stem the political instability caused by repeated acts of terrorism.

Diplomatic Fallout

The future of India-Pakistan relations appears increasingly uncertain. The two countries now have the task of striking a balance between security concerns and diplomatic talks. The Pahalgam terror attack has already reshaped political and economic balances in South Asia, and international organizations might have to step in to stop the situation from further escalating.

The diplomatic consequences could have a lasting impact, with the region likely to enter a new phase of increased tension.