The Pakistan Stock Exchange (PSX) witnessed a significant decline, with the KSE-100 Index falling by more than 1,000 points on Thursday. The benchmark index dropped below the psychological level of 63,000 points, settling around 62,500 points. Investors incurred losses amid the market downturn, which followed a similar downward trend observed on the previous day.
The decline in the PSX was attributed to the escalating tensions between Pakistan and Iran. In response to an air strike conducted by Iran, Pakistan's armed forces carried out an early morning attack on terrorist hideouts in Iran's Sistan-o-Balochistan province. This development intensified the strain between the two countries.
As a result of Iran's missile and drone strikes inside Pakistan, which Iran claimed targeted terrorist bases of Jaish-al Adl, the diplomatic relations between Pakistan and Iran rapidly deteriorated. Pakistan recalled its ambassador from Iran and expelled Tehran’s envoy in response to the missile strikes. This move marked a swift and unusual escalation in tensions between the two nations.
(With Agency Inputs)
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