Pakistan stock market falls 2% after India suspends Indus Waters Treaty over Pahalgam terror attack
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The Pakistan Stock Exchange (PSX) opened sharply lower on Thursday after India imposed a series of tough diplomatic measures on Pakistan, following the Pahalgam terror attack that killed 26 people. The benchmark KSE-100 index dropped 2.12%, or 2,485.85 points to 114,740.29 within the first five minutes of trading, as investors reacted to the escalating geopolitical tensions. India’s Ministry of External Affairs announced several decisions, including the suspension of the Indus Waters Treaty and the immediate closure of the Wagah-Attari border. Visa exemptions under the SAARC framework for Pakistani nationals have also been revoked. This comes a day after the PSX had already ended sharply lower on Wednesday, following the International Monetary Fund’s move to slash Pakistan’s GDP growth forecast to 2.6%. Adding to the pressure, Fitch Ratings highlighted concerns over the weakening rupee, political instability, and security unrest in Kashmi...