From Rally To Ruin: Pakistan’s KSE-100 Tanks 15,000 Points Since April 22 Amid India-Pak Flare-Up
Pakistan’s benchmark KSE-100 index has plunged sharply over the past two weeks; Know what has rattled the market sentiment
Pakistan Stock Market Crash: Pakistan’s benchmark KSE-100 index has plunged sharply over the past two weeks, falling from a high of 118,312 points on April 22 to 103,060.30 as of May 8. The steep decline, over 15,000 points, triggered by the heightened anxiety among investors amid rising geopolitical tensions in the region.
The selloff follows a recent flare-up in hostilities between India and Pakistan, sparked by a deadly terror attack in Pahalgam that claimed numerous civilian lives. In response, the Indian military launched Operation Sindoor, a series of retaliatory strikes targeting terror infrastructure across multiple locations in Pakistan.
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The cross-border escalation has rattled market sentiment, reversing recent gains in Pakistan’s equity market.
Pakistan Stock Exchange Halts Trading As PSE-30 Falls 7% On May 8
Pakistan temporarily suspended trading on its stock market after the benchmark KSE-30 index plummeted 7.2%, marking a second straight session of steep losses.
The broader KSE-100 index also plunged over 6.32%, a drop of 6,948.73 points, to 103,060.30 as of 1 p.m. local time, according to Investing.com. Before the latest tensions, investor confidence in the country had been on an upward trajectory, buoyed by a sovereign credit rating upgrade, falling global oil prices, and the successful negotiation of an International Monetary Fund (IMF) bailout.
In 2023, Pakistan’s stock market delivered an exceptional return of 84%—its best in over two decades—attracting renewed interest from global institutional investors, including BlackRock and Eaton Vance. However, the current volatility threatens to undo much of that progress.
The sharp drop in the KSE-100 reflects deepening investor concerns over regional instability, capital outflows, and policy uncertainty.
Analysts say the market is also on edge ahead of the IMF’s upcoming decision on a possible extension of its financial support to Pakistan, which could serve as a key stabilizing factor in the short term.
The geopolitical backdrop has added to domestic economic concerns, including inflationary pressures and a fragile external account. While the government has thus far managed to navigate economic headwinds with support from multilateral lenders, a prolonged period of uncertainty could dent investor appetite and delay recovery in capital inflows.
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