Pakistan Stock Exchange: The impact of increasing tension between India and Pakistan is being seen in the markets of both countries. During this geopolitical tension, the stock markets of both India and Pakistan are fluctuating. The Pakistani stock market has seen a huge decline after taking action under the ‘Operation Sindoor’ of the Indian Army. In just three days, there has been a decline of Rs 1.3 trillion in the market valuation.

Loss of 820 billion rupees in a day

On Thursday too, during the day trading, there was heavy fluctuations in the KSE-100 index. After the Indian Army air strikes, Pakistan’s stock market declined by more than 6 percent. Due to this, the trading had to be stopped for one hour. After the worst intraday fluctuations in the KSE-100 index, the nervousness in investors increased so much that the market cap fell by Rs 820 billion in just one business session. With this the index also slipped more than 6,400 points to reach its lowest level.

So much loss in three days

In the last three business sessions, the market cap of Pakistan’s stock market has suffered a huge loss of Rs 1.3 trillion. In Thursday’s trading session, the KSE-100 index saw a fluctuations of more than 10,000 points, which had climbed 1872 points at one time and then reached a low of 8,410 points.

Indian stock market also suffered losses

The effect of this tension is also seen in the Indian stock market. Due to all -round selling, the stock market investors have lost Rs 7 lakh crore in two days. Amidst this rising uncertainty, the market cap of listed companies in BSE has come down to Rs 7,09,783.32 crore to Rs 4,16,40,850.46 crore (US $ 4.86 trillion).

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Pahalgam terror attack: Today, a week of Pahalgam terror attack has been completed. After the terrorist attack in Pahalgam in Jammu and Kashmir on Tuesday, April 22, tension has increased between India and Pakistan. 26 innocent tourists died in this terrorist attack.

Taking a tough stand on this deadly terrorist attack, India took many tough steps against Pakistan. The prohibition of bilateral trade by the Government of India and the suspension of the Indus Water Treaty seems to have a profound impact on Pakistan’s economy as the KSE-100 index fell 1,405.45 points or 1.22 percent to close at 114,063.90 on Monday.

Pakistani stock market shakes with India’s decision

On Tuesday, the KSE-100 index has seen a decline of 1100 points. The decision to cancel the government’s SAARC visa exemption scheme, expel Pakistani Military Advisor (Athe), reduce the number of its diplomatic staff in Pakistan and shut down the attic border shook Pakistan’s stock market.

On April 24, the benchmark KSE-100 index of Karachi Stock Exchange broke within a few minutes of the start of the index business. There was a little recovery during the day, but then it fell 2,206 points to close at 115,019.81. Even today, Karachi Stock Exchange was trading at 114,007.40 points at 1:40 pm.

Lose 70 thousand crores after the Pahalgam attack

Let us know that after April 22, the KSE index has seen a decline of 5,494.78 points i.e. 4.63 percent. While the market cap of Karachi Stock Exchange was $ 52.84 billion, on April 29 it fell by 100 points to $ 50.39 billion. That is, the Pakistani stock market has lost $ 2.45 billion in a few days. According to this, after the Pahalgam attack, the Pakistani stock market has lost about 700000 crores so far.

Many challenges in front of Pakistan

Apart from the fluctuations of the stock market, Pakistan is facing a serious economic crisis. In May 2023, inflation increased by 38.5 percent here. Economic growth is also going to negative. The foreign exchange reserves have come down to just $ 3.7 billion, which has now become difficult to import.

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Pakistan Foreign exchange reserves: According to the latest data from the State Bank of Pakistan (SBP), Pakistan’s total foreign exchange reserves were recorded at US $ 16.02 billion in the last week of March 14, 2025. According to the report of ARY News, a statement issued by State Bank of Pakistan (SBP) stated that SBP reserves increased by $ 48.9 million during this period, causing it to US $ 11.14 billion. In addition, it reached US $ 4.87 billion with an increase of $ 38 million in foreign currency reserves kept by commercial banks. In this way, the total reserves of the country increased by $ 86.9 million to $ 16.02 billion.

On March 20, 2025, the Pakistan Stock Exchange (PSX) recorded the highest level in the KSE-100 index so far. During the intra-day trading, the index reached a record-breaking high of 119,421.81 points, while the current index closed at 118,663.73, with a gain of 689.71 points (0.58%).

Positive trends among investors
This positive trend of PSX has shown optimistic spirit among investors. This speed was supported by major shares like Hubc, Mari, Engroh, SYS and PPL, which together contributed 551 points to the index. However, FFC, Efert and POL registered a decline of 54 points in the index by putting negative pressure.

PSX’s future expectations
PSX is likely to continue in the coming days, as investors are optimistic about the future performance of the market. The total trading volume with over 268 million shares stood at Rs 20.2 billion, indicating strong activity in the market. Please tell that Pakistan has been facing financial crisis for many years. In the meantime, the increase in Pakistan’s foreign exchange reserves is considered good from the economic perspective of the country. However, during this period, Pakistan is also continuously talking about loans to IMF, but the IMF has placed some strict condition, which is causing trouble for Pakistan.