{"id":289252,"date":"2025-04-24T12:03:25","date_gmt":"2025-04-24T12:03:25","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/24\/pakistan-stock-exchange-tanks-2-as-india-suspends-indus-waters-treaty-over-pahalgam-terror-attack-times-of-india\/"},"modified":"2025-04-24T12:03:25","modified_gmt":"2025-04-24T12:03:25","slug":"pakistan-stock-exchange-tanks-2-as-india-suspends-indus-waters-treaty-over-pahalgam-terror-attack-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/04\/24\/pakistan-stock-exchange-tanks-2-as-india-suspends-indus-waters-treaty-over-pahalgam-terror-attack-times-of-india\/","title":{"rendered":"Pakistan Stock Exchange tanks 2% as India suspends Indus Waters Treaty over Pahalgam terror attack – Times of India"},"content":{"rendered":"
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International Monetary Fund has reduced Pakistan’s GDP growth projection to 2.6%. (AI image)<\/span><\/div>\n<\/section>\n<\/div><\/div>\n<\/div>\n

The Pakistan Stock Exchange<\/a> tanked on Thursday, following India’s implementation of stringent diplomatic sanctions against Pakistan in response to the Pahalgam terror incident that resulted in 26 people being killed.
The KSE-100 index<\/a> registered a substantial fall of 2.12%, equivalent to 2,485.85 points, reaching 114,740.29 in initial trading, as market participants responded to heightened tensions between the nations, according to an ET report.
India’s External Affairs Ministry implemented various measures, including halting the Indus Waters Treaty<\/a> and shutting down the Wagah-Attari border crossing. Additionally, the authorities cancelled visa privileges previously granted to Pakistani citizens under the SAARC agreement.
The decline followed Wednesday’s substantial losses at PSX, which occurred after the International Monetary Fund reduced Pakistan’s GDP growth projection to 2.6%.
The situation was further complicated by Fitch Ratings<\/a>‘ assessment, which expressed worries about the declining value of the rupee, political uncertainty, and security issues in Kashmir, factors that negatively influenced investor confidence.
Key policy changes announced:<\/span>
The 1960 Indus Waters Treaty will be suspended with immediate implementation.
The Integrated Check Post Attari operations will cease immediately. Valid permit holders may exit through this route until May 1, 2025.
Pakistani citizens’ SAARC Visa Exemption Scheme (SVES) privileges are revoked. Previously issued SVES visas to Pakistani nationals are now invalid. Current SVES visa holders from Pakistan must depart India within 48 hours.
The Pakistani High Commission’s Defence, Naval and Air Advisors in New Delhi have been designated Persona Non Grata and must leave India within seven days. India will recall its corresponding advisors from Islamabad. These diplomatic positions at both High Commissions will be eliminated. Additionally, five support personnel for Service Advisors will be withdrawn from each High Commission.
The total diplomatic staff at both High Commissions will be reduced from 55 to 30 personnel, with this reduction to be completed by May 1, 2025.
Any impact on Indian Markets?<\/span>
Indian stock markets showed minimal impact on Thursday, with investors maintaining vigilant observation of developments.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, “Nifty’s decoupling from the S&P 500 is striking. While the S&P 500 is down 8.4% YTD, the Nifty is up 2.27%. The resilience of the Indian economy, the expected US slowdown, dollar weakness, and continued FII inflows\u2014Rs 21,263 crore in the last six days\u2014have driven this outperformance of India.”
He further advised, “However, going forward, the market will be concerned about the timing, nature and magnitude of India’s response to the terror attacks and its consequences. Therefore, investors have to be cautious even while remaining invested.”<\/div>\n