🌍 Pahalgam Attack Fallout: Indian Measures Shake Pakistan’s Financial Markets
India’s strong diplomatic retaliation to the deadly terror assault in Pahalgam has caused significant turbulence in Pakistan’s financial landscape. On April 24, the Karachi-100 Index saw a sharp drop of 2,565 points (2.2%) during early trade as New Delhi took five stern actions against Islamabad—including the suspension of the historic Indus Waters Treaty of 1960.
At 12:20 PM IST, the index had somewhat stabilized at 116,228.25, still down by 997.89 points (0.85%), compared to Wednesday’s close of 117,226.
The index, which previously touched a 52-week low of 70,562.12 and a high of 120,796.67, reflects growing investor anxiety over regional unrest and economic uncertainty.
📉 Indian Markets Also React Amid Growing Tensions
Back in India, markets displayed high volatility. The BSE Sensex dropped by 259 points (0.3%), while the Nifty50slipped 64 points (0.26%) as investors treaded cautiously.
Also read: Jammu & Kashmir Terror Attack – Shah Visits Ground Zero, Nation in Mourning
💣 India’s Tough Response to Pahalgam Attack Triggers Market Panic
The Pahalgam massacre, which took place on April 22, claimed the lives of 26 tourists in Kashmir’s Baisaran area. In the aftermath, India’s Ministry of External Affairs declared the Indus Waters Treaty “in abeyance” until Islamabad acts against cross-border terrorism.
This response came as a major diplomatic blow to Pakistan and sparked intense speculation among investors.
📊 Pakistan’s Economic Woes Deepen: IMF & ADB Lower Growth Outlook
Adding fuel to the fire, the IMF downgraded Pakistan’s GDP growth forecast for FY2024–25 from 3% to 2.6%. The Asian Development Bank also cut its projection to 2.5%, well below the government’s target of 3.6%.
💬 Analyst Insight: “Geopolitical stress is pressuring markets”
According to Narender Singh, Founder of Growth Investing, “The ongoing strain has triggered a wave of risk aversion among investors. Sectors like energy and infrastructure are facing heightened volatility.”
“Any further escalation could lead to deeper instability. Investor sentiment now hinges on the government’s next steps and international diplomatic interventions,” he added.
⚠️ Terror Strike Details: 26 Killed in Pahalgam
The deadly shooting on April 22 is believed to have been carried out by TRF (The Resistance Front)—a proxy group linked to Lashkar-e-Taiba. The attack occurred in the serene meadows of Baisaran, marking one of the deadliest incidents in Kashmir since the Pulwama attack in 2019.
In response, Prime Minister Narendra Modi is slated to host an all-party meeting to address the crisis and unify the national stance.
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