Pakistan Stock Market Trades Sharply Lower Amid Escalating Tensions

The Karachi 100 Index on the Karachi Stock Exchange declined by more than 2% on Friday, reflecting a broader sell-off across Asian markets. The index fell as much as 2.56% or 4,138 points to an intraday low of 157,072.

Key Losers

• Javedan Corp: plunged nearly 10%
• International Industries: declined by up to 6%
• Unity Foods: declined by up to 6%
• Interloop: declined by up to 6%
• Fauji Cement Company: declined by up to 6%
• Systems Ltd: declined by up to 6%
• Nishat Mills: declined by up to 6%
• International Steels: declined by up to 6%

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Global and Local Factors

The decline in the Pakistan Stock Market comes amid heightened tensions between Pakistan and Afghanistan, as well as the ongoing US-Iran war in the Middle East. The US Embassy in Islamabad has issued a travel advisory warning of potential security risks and terrorist attacks following violent protests triggered by the killing of Iran's Supreme Leader Ayatollah Ali Khamenei.

Deteriorating Security Situation

The security situation in Pakistan has deteriorated significantly, with at least 24 people killed in protests across major cities. The Pakistan-Afghanistan War has been ongoing for more than a week, with both countries exchanging attacks and Islamabad declaring an "open war" with Afghanistan.

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IMF Loan Programme Review

A IMF mission visiting Pakistan to review the country's loan programme has reportedly left for Turkey abruptly, although discussions are continuing virtually.