The Pakistan Stock Exchange (PSX) experienced a significant downturn on Wednesday, with its benchmark KSE-100 index plummeting over 2% during intraday trading.

The sharp decline follows rising tensions between Pakistan and India, fueled by the recent Pahalgam attack.

At 12:56 pm local time, the KSE-100 index stood at 112,482.00, representing a drop of 2390.18 points (2.08%) compared to Tuesday’s closing of 114,872.18. This marks a continuation of negative trends observed since last week, directly attributed to the escalating geopolitical situation.

Adding to the market’s instability, Information Minister Attaullah Tarar issued a stark warning in the early hours of Wednesday, citing credible intelligence suggesting India might launch a military strike within the next 24 to 36 hours, using the Pahalgam incident as a pretext.

The minister’s announcement further fueled investor anxieties and contributed to the significant sell-off.