Pakistani market experts attributed the decline in the Pakistan Stock Exchange to reports suggesting a potential attack in the coming days.
Islamabad: Amid growing speculation of a potential military action, the Pakistan Stock Exchange (PSX) tumbled by 3,545 points on Wednesday, fueled by concerns over a possible Indian strike following the recent terror attack in Pahalgam. After a day of heavy fluctuations, the index closed at 1,11,326.57, which is 3,545.61 or 3.09 per cent less than the previous closing level of 1,14,872.18.
According to the news, the benchmark KSE-100 index fell 1,717.35 points or 1.5 per cent to 113,154.83, while it had last closed at 114,872.18. At 10:38 am, the index fell 2,073.42 points or 1.8 per cent from the previous close. By 1:50 pm, the stock market witnessed further selling pressure, as the KSE-100 index fell 3,255.42 points or 2.83 per cent from the previous close.
Pakistan Minister warns of possible attack
As reported by the Pakistani daily Dawn, Pakistani market experts attributed the sharp decline in the Pakistan Stock Exchange to fears of a possible Indian military strike in the coming days. Investor anxiety reportedly intensified following a press briefing by Pakistan’s Information Minister Attaullah Tarar, who hinted that India might take action within the next 24 to 36 hours. Tarar claimed that his government possesses “credible intelligence” indicating that India is planning a military strike within the next 24 to 36 hours.
The KSE-100 index returned to the rise in the last session after the International Monetary Fund (IMF) confirmed that the IMF’s Executive Board will meet on May 9 to discuss the country’s staff-level agreement for a new arrangement of $ 1.3 billion under the Climate Resilience Loan Program. Apart from this, there will also be the first review of Pakistan’s ongoing $ 7 billion bailout program.
Pahalgam terror attack
As many as 26 people, mostly tourists, were killed and more than a dozen others injured in the Pahalgam terror attack which occurred on April 22. This has been one of the biggest terror attacks after the abrogation of Article 370 in 2019. The government, however, has yet to officially confirm the number of casualties in the terror attack in Pahalgam. Following the terror attack, security forces launched search operations to track down the terrorists responsible. Security has been heightened since the attack, with visuals from the area showing the streets deserted in the usually bustling tourist area.
Also Read: India, Pakistan military hold talks, New Delhi warns against unprovoked ceasefire violations
Also Read: Navy vessels on standby, airspace closed: Here’s how fear of India’s attack panics Pakistan | Report
