Trading on the Pakistan Stock Exchange was temporarily suspended on May 8, 2025, after the KSE30 index experienced a sharp decline. The index plummeted by 7.2% prompting an automatic stop-loss mechanism.
This decline occurred amidst escalating tensions between Pakistan and India, sparked by the Pahalgam terror attack in late April, and retaliatory strikes by India. These events have significantly impacted investor confidence in Pakistan's already vulnerable economy.
The KSE30 index has lost 14.2% since the Pahalgam attack. The market halt also followed reports of Indian drone strikes in major Pakistani cities. While Pakistan's stock market faced this turmoil, Indian stocks showed relative resilience, with the Nifty50 and Sensex experiencing milder declines.