KARACHI, April 25 (Alliance News): The Pakistan Stock Exchange (PSX) witnessed a volatile trading session on Friday, as escalating geopolitical tensions with India and ongoing economic concerns dampened investor confidence, causing erratic movements in the market.
The benchmark KSE-100 Index initially climbed to a high of 115,844.88 points—up by 825.07 points or 0.72% from the previous close of 115,019.81. However, the early momentum quickly faded, and the index slid to an intraday low of 113,716.60, reflecting a drop of 1,303.21 points or -1.13%.
Independent economist AAH Soomro attributed the sharp swings to heightened fears of conflict following the recent attack on Indian tourists in Indian Illegally Occupied Jammu and Kashmir (IIOJK). “Investors would shy away for a few weeks or until clarity is observed over the risk of escalation,” he said.
Market jitters were further compounded by India’s recent retaliatory measures, including suspending the Indus Water Treaty, cutting diplomatic staff, and tightening travel restrictions. Pakistan responded by closing its airspace to Indian flights and expelling Indian diplomats.
Meanwhile, the State Bank of Pakistan (SBP), in its Financial Stability Review 2024, warned of emerging risks from rising global protectionism. It flagged US tariffs and shifting trade dynamics as potential threats to Pakistan’s economic outlook.
Adding to the pressure, SBP data showed a $367 million decline in foreign exchange reserves, now standing at $10.21 billion. The central bank cited debt repayments and weak inflows for the drop. Total reserves, including commercial bank holdings, fell to $15.436 billion.
While the country posted a record $1.2 billion current account surplus in March, February saw a $97 million deficit. SBP stressed the need for structural reforms and stronger external buffers to sustain economic recovery.
As the week ends, uncertainty continues to dominate market sentiment, with investors closely monitoring both the geopolitical environment and fiscal indicators for signs of stability.
