The Pakistan Stock Exchange (PSX) website has become non-operational amid rising tensions between India and Pakistan following a deadly terror attack in Pahalgam, Kashmir. The attack, which claimed 26 lives, has led to a significant escalation in diplomatic tensions between the two nations.
India has responded with a series of measures, including downgrading diplomatic ties, suspending the Indus Waters Treaty, and closing key border crossings. In retaliation, Pakistan has suspended bilateral trade and airspace agreements with India.
The PSX website displayed a message stating “We’ll be back soon,” indicating that it is under maintenance until further notice. However, the timing of this outage coincides with a sharp decline in the stock market.
The benchmark KSE-100 index plummeted by over 2,500 points across two consecutive trading sessions, reflecting heightened geopolitical uncertainty and investor anxiety. On Thursday, the index fell by 2.12%, or 2,485.85 points, within the first five minutes of trading, closing at 114,740.29.
The economic challenges facing Pakistan are compounded by a recent revision in its GDP growth forecast by the International Monetary Fund (IMF) to 2.6% for the current fiscal year. This adjustment, coupled with concerns over a weakening currency and political instability, has further eroded investor confidence in the Pakistani market.
The situation highlights the vulnerability of Pakistan’s economy to both internal and external pressures, underscoring the need for sustainable economic reforms to mitigate these risks.