Pakistan stock market bleeds, Karachi index plunges 5.5%

India’s overnight military operation, Operation Sindoor, targeting terror infrastructure in Pakistan and PoK, has triggered immediate economic repercussions across the border. The Karachi Stock Exchange’s KSE-100 index fell by a massive 6,272 points—5.5%—early Wednesday, crashing to 107,296.64 from the previous day’s close of 113,568.51.

The plunge comes as investors panicked following India's announcement of precise missile strikes on nine terror-linked locations, including Jaish-e-Mohammed and Lashkar-e-Taiba bases, as retaliation for the Pahalgam terror attack that killed 26 civilians.

Indian officials confirmed the operation involved all three military branches and began at 1:44 am. Simultaneously, civil defence drills involving air raid sirens and evacuation exercises were conducted across 244 Indian districts.

Analysts warn that prolonged cross-border tension could severely damage market confidence and foreign investment prospects in Pakistan. Meanwhile, ceasefire violations were reported along the LoC as Pakistan responded with heavy artillery, and the Indian Army replied in a “calibrated manner.”

This financial setback follows India’s broader diplomatic retaliation, including visa cancellations for Pakistani nationals, suspension of the Indus Waters Treaty, and diplomatic downgrades.