Pakistan Stock Market Decline: KSE-100 Drops After India’s Diplomatic Actions

Pakistan Stock Market Drops 2,500 Points After India’s Diplomatic Move: Impact on KSE-100 Index and PSX Performance.

The Pakistan Stock Exchange (PSX) witnessed a dramatic decline on April 24, 2025, with the KSE-100 Index plunging by 2,565 points (2.19%), settling at 114,661.20 points. This significant drop comes after India suspended the Indus Waters Treaty. It has taken other diplomatic actions against Pakistan. These actions followed a deadly terrorist attack in Pahalgam, Jammu and Kashmir, which claimed the lives of 26 civilians. One Nepali national was among the victims.

The KSE-100 index is PSX’s benchmark. It fell sharply by over 2,500 points. This marks one of the steepest intraday declines in recent months.

At its lowest, the KSE-100 dropped to 114,661.20 points, reflecting a 2.19% decrease from its previous close. The slide wiped out billions in market capitalization, rattling investor confidence.

In response to the attack, India took several retaliatory steps. These steps included suspending the Indus Waters Treaty. This treaty has been a key agreement between the two nations since 1960. India also closed the Wagah-Attari border, severed transportation links, and expelled Pakistani defense advisors from its territory. These actions were followed by the revocation of visa privileges for Pakistani citizens. There was also a reduction of embassy staff in Islamabad. These moves further heightened tensions.

Amid the market turmoil, the PSX official website went down during crucial trading hours. It displayed a “We’ll Be Back Soon” message. This issue added to the uncertainty and concerns surrounding information transparency, especially as the market reacted to significant diplomatic shifts.