Pakistan Stock Market Plunges Amid Rising Tensions

[{"selector":"#anim-c92e4fbd-1e91-4def-afb2-985663bd9f8d","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] May 08, 2025 Khushi Kumari

The Karachi Stock Exchange (KSE) experienced a sharp decline, with the KSE-100 index dropping over 6% due to escalating tensions between India and Pakistan

[{"selector":"#anim-917980d0-e3f2-4063-8c90-61d4ab90bb96","keyframes":{"transform":["translate3d(-99.02913%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fd6c05d5-2306-4ac7-9535-888ab8dc4d54","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-25bb268b-d802-42b0-8e7b-85e9b2f6b69c","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-6615c5b8-f291-48d0-9766-ce1e8f12e43e","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eea862d0-f9c5-463a-a89a-5b934ee34c65","keyframes":{"transform":["translate3d(0px, -130.01658%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

In response to the steep decline, trading was temporarily suspended to prevent further panic-driven sell-offs. The halt was a measure to stabilize the market amid geopolitical uncertainties

[{"selector":"#anim-ae5f4fc9-afe7-4f61-a69d-cb5eca4d7971","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b54f83d3-de33-4ca1-ac87-80f2589aeee9","keyframes":{"transform":["translate3d(0px, -127.54946%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8b3b04a1-aa30-418e-962a-0d68f441b4ca","keyframes":{"transform":["translate3d(-100%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2bf35c77-f052-444a-b1f4-ad057ee58277","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-af980d43-bfdb-4b80-9d98-0767625aa747","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

The market turmoil follows India's military strikes on alleged terrorist camps in Pakistan-administered Kashmir, escalating the conflict between the two nations

[{"selector":"#anim-08d30ef2-ee93-4e02-8eb4-3f43efe66011","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3f2eeadd-6fa8-4bfb-bb78-5d0dba0cbc2c","keyframes":{"transform":["translate3d(0px, -131.42362%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-30fbc94f-5309-4b53-a3ae-ff951d1d6780","keyframes":{"transform":["translate3d(-99.02913%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cb7cbd93-a40b-452c-9a1d-6d17fd39545a","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-22e46ced-0e70-4a27-8002-026d145ed70d","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Investors reacted with concern to the escalating conflict, leading to a significant sell-off in the stock market. The uncertainty has disrupted Pakistan's economic recovery efforts

[{"selector":"#anim-a7846c80-73d8-43ae-8cfd-49d36c326ba7","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b6575130-0dfa-4655-88bb-1b4f5e6298b2","keyframes":{"transform":["translate3d(0px, -127.54946%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4c604738-150d-4bd9-9429-17f94ae68866","keyframes":{"transform":["translate3d(-99.02913%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e0bc4624-78db-4da3-8144-9240c996eef9","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-96aab4c5-fc9c-4714-a079-08130f319a5d","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Pakistan's fragile economy, which had recently shown signs of recovery, faces new challenges as the conflict threatens to derail progress and deter international aid

[{"selector":"#anim-ff8c0c6f-440f-46a6-9ac5-c39f66f97a30","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d2a22177-fd61-46fa-8498-d18d26144d1d","keyframes":{"transform":["translate3d(0px, -132.701%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-af9af8c9-b230-4be8-add9-9797d36e332d","keyframes":{"transform":["translate3d(-99.02913%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-199c2bca-c284-4f11-85f1-6d87e4494c63","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-94b2fff2-0196-4de7-9e53-d3ecd2ef629e","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

The geopolitical tensions have not only impacted Pakistan's markets but have also caused ripples across global financial markets, reflecting widespread investor anxiety

[{"selector":"#anim-bb35a4bc-bd06-4815-8958-119771a94bee","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-94f2451c-82a9-4ea3-bebe-2f13fb0f2867","keyframes":{"transform":["translate3d(0px, -131.42362%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bb88de72-d95d-4438-89c1-b2d2805e2657","keyframes":{"transform":["translate3d(-99.02913%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-99ad5c17-207d-43d8-a60c-51946a0a29ca","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f33438ef-d228-4d2e-8663-d3f49e56c5b1","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

The Pakistani government has condemned India's actions and vowed to respond, further heightening tensions and contributing to market instability

[{"selector":"#anim-03920728-4946-44af-97ef-70a54c353dcf","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-96281778-9305-4584-9bda-f1c6b2340397","keyframes":{"transform":["translate3d(0px, -131.42362%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6a876bd6-79e0-4019-a586-54c0f05d45c5","keyframes":{"transform":["translate3d(-99.02913%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-27317770-46c3-41ba-a2a4-9aa940286e51","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ea9689dd-136f-4f9b-a4b7-f776b983173a","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

This market decline is reminiscent of previous instances where geopolitical tensions between India and Pakistan have led to significant economic repercussions.

[{"selector":"#anim-278d7ea2-0103-409d-902a-c7d7c45b46c7","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-90130e6a-0b97-473f-84cf-3fd1e36c31ee","keyframes":{"transform":["translate3d(0px, -131.42362%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-44a910d3-39f0-4d20-b40e-fb63d7dcb31c","keyframes":{"transform":["translate3d(-99.02913%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e61997f6-8d18-43fa-98ea-7d191e210a79","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-03869883-1675-4fdd-8838-4e41bfb274c5","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

Read More Nancy Tyagi Shines at Cannes 2025 in Handcrafted Elegance Blink and It’s Solved: Purdue’s Record-Breaking Rubik’s Cube Robot The Golden Penguin: Nature’s Rare Marvel Summer Wedding at the Sea: Top Coastal Destinations Worldwide