 "Stock brokers monitor new on television screen at a booth, during a trading session at the Pakistan Stock Exchange, in Karachi, Pakistan July 3, 2023. Source: Reuters")
The Pakistan Stock Exchange (PSX) on Wednesday (April 30) saw a bloodbath on the trade floor as stocks crashed by more than 3,500 points. According to media reports, experts attribute the steep decline in stock prices to the heightened military tensions with neighbouring India.
The benchmark KSE-100 index decreased by 1,717.35 points, or 1.5 per cent, to stand at 113,154.83 from the last close of 114,872.18 at 9:53 am local time, Pakistan’s Dawn News reported. The index closed at 111,326.57, down by 3,545.61 or 3.09 per cent, the outlet reported.
Tensions between the two nuclear-armed nations are running high since the Pahalgam terror attack in Kashmir last week, in which 26 people were killed. The Pakistan government earlier on Wesdnesday claimed it had ‘credible intelligence’ that India was going to launch a military action across the Line of Control (LoC).
Dawn quoted Mohammed Sohail, chief executive of Topline Securities, as saying that the crash could be attributed to “news of likely attack in next few days”.
Meanwhile, Awais Ashraf, director of research at AKD Securities, said the concerns in the stock market have intensified following the press conference by the country’s information minister.
“Investors are worried about potential Indian military action against Pakistan, concerns that have intensified following the information minister’s press briefing,” he was quoted as saying.
What did Pakistan’s information minister say?
Information Minister Attaullah Tarar told the media that there was “credible intelligence” hinting at a potential military strike by India within the next 24 to 36 hours “on the pretext of baseless and concocted allegations of involvement in the Pahalgam incident”.
His statement came a day after Indian Prime Minister Narendra Modi reportedly gave the country’s powerful military “operational freedom” to respond to the Pahalgam attack. The PM has vowed to pursue and punish the terrorists involved in the incident.
Impact Shorts
More ShortsAccording to a Reuters report, India has identified three terrorists for their involvement in the Kashmir attack, including two Pakistani nationals.
Pakistan meanwhile has urged India to conduct a “transparent” international probe into the incident and has called for Russia’s and China’s involvement.
International response to Indo-Pak tensions
United Nations Secretary-General Antonio Guterres has urged both India and Pakistan to avoid any confrontation that could lead to “tragic consequences.” In separate phone calls with both nations, Guterres emphasised restraint and dialogue.
The United States echoed this message, with Secretary of State Marco Rubio expected to speak soon with his Indian and Pakistani counterparts to help de-escalate the situation.
Meanwhile, Britain has called for calm among its Indian and Pakistani communities and has issued a travel advisory urging citizens to avoid all travel to Jammu and Kashmir, except for essential cases.