Business
Pahalgam Attack Sparks Panic: Pakistan Stocks Plummet 2,485 Points
Karachi, April 24 – Pakistan’s stock market took a brutal hit as the KSE-100 index cratered 2,485 points, or 2.12%, to 114,740.29 in early trading, one of its sharpest single-day drops in months. The plunge followed India’s diplomatic hammer—suspending the Indus Waters Treaty, sealing Wagah-Attari, and banning SAARC visas—after the April 22 Pahalgam terror attack killed 26 civilians, mostly tourists. Investors bolted, fearing sanctions, border lockdowns, and a potential military flare-up.
Why Did Pakistan’s Market Tank?
- Geopolitical Heat: India’s moves, plus Pakistan’s retaliation (Wagah closure, SAARC visa expulsions), rattled nerves.
- Foreign Exodus: Overseas investors dumped stocks, pulling out millions in a single session.
- Currency Wobble: The rupee hit a record low near 285/USD, with dollar demand spiking.
- Sector Slaughter: Banks shed 4%, energy 3%, and cement 5%, dragging the index down.
Key Triggers Behind the Crash
- Trade Paralysis: India-Pakistan trade, worth billions yearly, is frozen, strangling border commerce.
- Credit Jitters: Whispers of a credit rating downgrade loom if tensions don’t cool.
- Travel Woes: Pakistan International Airlines stock slid 8% as airspace bans rerouted flights.
Broader Economic Fallout
- Debt Crunch: Pakistan’s $25 billion forex reserves could bleed out fast if sanctions hit.
- IMF Hiccup: A $1.1 billion bailout tranche hangs in the balance amid the chaos.
- Retail Pain: Billions in market value vanished, gutting small investors’ portfolios.
How India’s Markets Held Up
- Sensex/Nifty Dip: Down 0.3% (Sensex at 79,857, Nifty at 24,277), but IT and pharma stocks cushioned the fall.
- Rupee Steady: RBI kept the rupee near 83.40/USD, dodging major swings.
- Defense Pop: Bharat Electronics and Hindustan Aeronautics jumped 6-8% on war fears.
Expert Takes
- Ex-Central Bank Advisor: “Markets choke on uncertainty. A quick border reopening could spark a rebound.”
- Top Analyst: “If this spirals to conflict, KSE-100 might crash to 100,000. Brace for a rough ride.”
Historical Flashbacks
- 2019 Balakot: KSE-100 shed 3,500 points in three days after India’s airstrikes.
- 2008 Mumbai Attacks: An 8% market dive as war drums beat loud.
What’s Next for Investors?
- Short-Term Chaos: Expect wild swings until diplomats clear the air.
- Long-Term Risk: Pakistan’s $350 billion economy, already wobbly, faces deeper trouble.
- Global Ripple: If foreign outflows persist, Pakistan could get sidelined in emerging market indexes.
The Pahalgam fallout has markets on edge, with Pakistan’s economy staring down a barrel. Keep watch as tensions simmer.
