A deadly terror attack happened in Pahalgam, Jammu and Kashmir, killing 26 people. After this, the situation between India and Pakistan became tense. The Indian government believes the attackers had links to Pakistan.
India Plans to Respond
India’s Prime Minister Narendra Modi held a meeting with top military leaders. He gave them full freedom to decide how and when to respond. This made many people think that India might take military action against Pakistan soon.
Pakistan Reacts
Pakistan’s Information Minister, Ataullah Tarar, said on Tuesday night that they have strong intelligence that India may attack in the next 24 to 36 hours. This warning created fear and worry among the public and investors.
PSX Drops Sharply
The Pakistan Stock Exchange (PSX) reacted strongly to the growing tensions. On Wednesday, the stock market dropped more than 2,000 points in early trading. This fall was mainly due to fears of a possible war.
The KSE-100 index, which is the main stock index, fell by 1,717 points early in the day and continued to fall. By 10:38 am, it had dropped by 2,073 points, or 1.8 per cent.
Experts and Business People Worried
Yousuf M Farooq, a research director at Chase Securities, said the market fall was because of the news about a possible attack. Fatima Bucha from AKD Securities added that investors are scared after the government’s statements.
Atiq Mir, head of a traders’ group in Karachi, said businesses are also feeling the pressure. “Shops and markets are not busy. People are worried about what might happen next,” he explained.
India Takes Strong Steps
After the April 22 attack, India also took diplomatic actions. It downgraded relations with Pakistan, expelled Pakistani military officials, ended the Indus Water Treaty of 1960, and shut the Attari border crossing. These steps are seen as strong warnings to Pakistan.
(With PTI Inputs)
