Panic at Pakistan Stock Exchange: Trading Halted After PSX Crashes Over 7% Following Operation Sindoor

Trading at the Pakistan Stock Exchange (PSX) was halted for an hour after the benchmark index fell 7.2%. The stock markets in Pakistan are witnessing heavy selling as the tension with India escalated further with 'Operation Sindoor', which decimated terror dens across the border.

On Wednesday, the Karachi Stock Exchange (KSE-100) nosedived 6,272 points in early trade today, crashing to 107,296.64 - registering a staggering single-day drop triggered by India’s confirmation of precision strikes.

The dramatic sell-off reflected deepening investor panic in Pakistan’s markets, already reeling from economic instability and heightened geopolitical tensions following the April 22 Pahalgam terror attack. The KSE-100 has now shed 3.7% since the incident, as fears of escalation and international fallout grow.

Last month, Pakistan’s stock market witnessed a severe crash, shedding over 8,700 points after US President Donald Trump announced new trade tariffs. Now, in the aftermath of India’s retaliatory missile strikes under “Operation Sindoor” — following the deadly Pahalgam terror attack that killed 26 civilians — the Pakistan Stock Exchange (PSX) is once again under pressure.

Compared to India’s more resilient economy, Pakistan’s fragile financial condition, reliance on IMF funding, and weak investor confidence leave it highly vulnerable. The looming May 9 IMF review further compounds anxiety, especially as the country struggles to meet economic reform benchmarks. With limited fiscal space and heightened geopolitical risks, the PSX remains one of the most immediate casualties of the India-Pakistan standoff.

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