Pahalgam Terror Attack Fallout: Pakistan Stock Market Crashes Over 2,000 Points

A tragic terror attack in Kashmir’s Pahalgam has sent shockwaves far beyond the region, not just politically but economically as well. The aftermath of this deadly incident, which took the lives of 26 innocent tourists, is now being felt in Pakistan’s financial markets.

What Happened?

On Wednesday, April 23, a major terror attack rocked Pahalgam in Jammu & Kashmir, resulting in the death of 26 Indian tourists. It is being considered one of the most severe attacks since the 2019 Pulwama bombing, which killed 40 CRPF jawans.

India has directly blamed Pakistan for supporting and harboring the terrorist groups behind this attack. In response, the Indian government has launched a series of strong diplomatic actions, including:

• Suspension of the Indus Water Treaty

• Downgrading of diplomatic ties with Pakistan

• Expelling Pakistan’s defence, naval, and air advisors from New Delhi

• Beginning the withdrawal of Indian military advisors from Islamabad

Stock Market Takes a Hit

As a result of the rising political tension, Pakistan’s benchmark KSE100 index nosedived by more than 2,000 points on Thursday morning. The index fell to 115,128.04, down 2,098.10 points or 1.79%.

This sharp fall reflects investor panic and uncertainty over the worsening India-Pakistan relations. Key stocks such as:

• Alliance Global Logistics (AGL)

• FrieslandCampina Engro Pakistan (FCEPL)

• Nishat Mills (NML)

• Pakistan International Bulk Terminal (PIBTL)

• Airlink Communication (AIRLINK)

• Punjab Oil Mills (POML)

...plunged between 5-7% during today’s trading session.

Why This Matters

The market had been on a strong uptrend, with the KSE100 index gaining over 64% in the last year, reaching highs of over 120,000 points. But geopolitical instability has the power to erase gains in just a few hours.

This event shows how terrorism and political tension can affect not just national security but also economic stability. The Pakistan stock market is reacting to fears of further sanctions, reduced international cooperation, and the possibility of escalated conflict.

What to Watch Next

Investors and analysts will now be closely watching:

• India’s next steps, especially regarding trade or international diplomacy

• Global response, especially from the UN and other key nations

• Pakistan’s official reaction and potential military or political countermeasures

Any further escalation could have more damaging effects on both nations' economies.

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Conclusion

The Pahalgam terror attack is a grim reminder of the cost of cross-border terrorism—not just in human lives, but in national and regional stability. While India takes a firm diplomatic stance, the financial consequences for Pakistan are already visible in its crashing stock market. More turbulence may be on the way if peace and diplomacy do not prevail

Reference from :- https://www.businesstoday.in/markets/stocks/story/pahalgam-terror-attack-pakistan-stock-market-hit-hard-kse100-plunges-2000-pts-heres-why-473482-2025-04-24