Kolkata: Stocks on Karachi Stock Exchange appeared to have nosedived as trading began on Wednesday, May 7, hours after India struck back demilishing nine terror bases in PoK and Pakistan. According to delayed reports on a website, the Karachi Stock Exchange index dived 5,653.07 points, or 4.98% and wa stading at 107,915.44 even as the official website of the Karachi Stoch Exchange remained unavailable.
After India hit back with missile strikes across the line of control from Tuesday night, all eyes are on how the Pakistan stock market behaves on Wednesday, May 7, 2025. The broad index KSE-100 of Karachi Stock Exchange was down about 4% since tension escalated between India and Pakistan following the terror attack in Pahalgam killing 26. data showed that between April 23 and May 5, the Karachi Stock Exchange index dipped 3.7%, mirroring nervous investors who apprehended a strong Indian military response to the April 22 attack on tourists in Pahalgam.
According to websites of investment firms in Pakistan the stock exchange of that country remains open from 9:32 am to 3:30 pm Pakistan Standard Time (GMT+05:00) Monday through Thursday and from 9:17 am to 12:00 pm and 2:32 pm to 4:30 pm on Friday. The Pakistan Stock Exchange closes for lunch / intermission each day.
Website under maintenance
According to Bloomberg, the KSE-100 index stood at 113,476.40 on May 6. During the day, it declined 601.10 points or 0.53%. On Wednesday morning, it was not possible to access the Karachi Stock Exchange website. “PSX website is under maintenance and until further notice,” kept flashing in the screen.
Impact of “Regional geopolitical tension”
Significantly, the Pakistan economy is in a shambles and any military conflict with its eastern neighbor can prove to be suicidal for Pakistan’s economy, global rating major Moody’s has said. In a note to its clients on May 5, Moody’s said that rise in tension across the border could harm Pakistan’s access to external financing and pressure its already-stressed forex reserves. Pakistan is heavily dependent on external debt and it does not have the resources to service that debt. recently China had to roll over $2 billion debt which was due from Pakistan, which is an ally of Beijing.
Pakistan is said to have forex reserves to service only three months of imports. It owed more than $131 billion to external lenders at the end of December 2024. In FY23 and FY24, Islamabad borrowed in excess of $3 billion from the International Monetary Fund to keep its head above waters. Since 2022, Pakistan’s economy has been in the news for all the wrong reasons — unmanageable deficits, runaway inflation of food and fuel prices and overall shortages.
US-based global ratings major Moody’s has told its clients this week that Pakistan will sustain major harm in its already-stressed economy if the gets into a military conflict with India. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
