PSX sheds over 3,500 points amid Pakistan-India tensions

Pakistan’s benchmark KSE-100 index slumped by over 3.14% on Wednesday, shedding 3545.61 points as investors reacted to broader economic concerns and weak market cues.

As the session closed, the KSE-100 traded at 111,326.57, down from the previous close of 114,872.18. The index had touched a high of 114,066.12 earlier in the session.

Trading volume stood at over 254 million shares, with a total market value of Rs24.21 billion.

Investor confidence took a hit after a warning from Information Minister Attaullah Tarar regarding heightened regional tensions.

In a televised address, Tarar said that Pakistan possessed credible intelligence suggesting India was planning hostile actions and could use the recent attack in Pahalgam, located in Indian Illegally Occupied Jammu and Kashmir (IIOJK), as a pretext.

“Pakistan has itself suffered immensely from terrorism and understands the pain and consequences of such violence,” the statement added, reaffirming Islamabad’s call for restraint and regional peace.

Tensions have surged between the two nuclear-armed neighbours following a attack in Pahalgam, located in Indian-Illegally Occupied Jammu and Kashmir.

The attack, which occurred on April 22, claimed the lives of 26 people, mostly tourists, making it one of the deadliest incidents in the region since the year 2000.

On April 23, India unilaterally suspended the Indus Waters Treaty (IWT), a critical water-sharing agreement brokered by the World Bank, which has held steady through numerous conflicts between the two countries.

The next day, Pakistan retaliated by threatening to put the 1972 Simla Agreement in abeyance and closing its airspace to Indian flights.

India has suggested that cross-border links may have been involved in the attack, although it has not provided concrete evidence. In contrast, Pakistan has strongly denied any involvement.

Prime Minister Shehbaz Sharif has called for an independent investigation into the incident to determine the truth.