Pakistan’s stock market plunged sharply on Thursday, April 24, 2025, as the Karachi-100 index (KSE-100) nosedived over 2,500 points – more than 2% – within minutes of the opening bell. The sharp sell-off was triggered by India’s suspension of the Indus Waters Treaty in retaliation for the Pahalgam terror attack that claimed 26 lives, including tourists.
By the afternoon, the KSE-100 had recovered slightly but still closed down by 1,532.42 points (1.31%) at 115,693.72, reflecting investor anxiety over escalating geopolitical tensions. This marked the second consecutive day of losses for the exchange, following a 1,204-point drop on Wednesday after the International Monetary Fund (IMF) and the Asian Development Bank (ADB) lowered Pakistan’s GDP growth forecasts for FY25 to 2.6% and 2.5%, respectively—well below the government’s target of 3.6%.
India’s retaliatory measures also included closing the Attari border, canceling SAARC visas for Pakistani nationals, and reducing diplomatic staff, all effective by May 1. The suspension of the Indus Waters Treaty – the first since its signing in 1960 – has further strained bilateral relations and heightened investor concerns over regional stability.