Pakistan stock market opens at single-day high, recovering losses after India standoff

A man uses a mobile phone as he takes a photo of the electronic board displaying share prices during a trading session at the Pakistan Stock Exchange, in Karachi, Pakistan, on November 28, 2023. (Reuters/File)
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Updated 12 May 2025
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Pakistan stock market opens at single-day high, recovering losses after India standoff

  • Benchmark KSE-100 Index opens at 117,104.11, up by 9,929.48 points, largest single-day gain on record
  • Pakistani stocks also rally following the IMF’s approval on Friday of a loan program review for Pakistan

KARACHI: The benchmark KSE-100 Index at the Pakistan Stock Exchange (PSX) opened at 117,104.11 points on Monday, up by 9,929.48 points, marking the largest single-day increase in index points after a weekend ceasefire agreement with India. 

Pakistan’s stocks rallied after US President Donald Trump announced a ceasefire between nuclear-armed neighbors India and Pakistan. Both states had exchanged missile, drone and artillery strikes last week amid surging tensions. 

The development is a breath of fresh air for the stock market, which saw a record-breaking 6,482-point plunge last Thursday. This was the largest single-day decline in the index’s history as investors feared an escalation in the conflict between India and Pakistan. 

“Pakistan Stock Market opens at a single-day record,” Khurram Schehzad, adviser to the finance minister, said in a statement. “A new record for a single day, way more than the single-day decline it recorded last week.”

Pakistani stocks also rallied after the International Monetary Fund (IMF) approved a loan program review for Pakistan on Friday. The IMF nod helped unlock around $1 billion in much-needed funds for Islamabad and greenlit a new $1.4 billion bailout despite New Delhi’s objections.

“Pakistan has much more to offer, given IMF’s board approval of $2.4 billion, further decline in interest rates, Pakistan’s measured and responsible response in both its narrative and actions on-ground,” Schehzad noted. 

The official said these developments and a potential “positive” spillover effect of a likely settlement of the US-China tariff dispute, had caught investors’ eye and caused the stocks to rally. 

Schehzad noted that renewed investor confidence, enhanced IMF funding and support, a low inflation rate and stable currency parities in the region all position Pakistan “for a more meaningful economic upside moving forward.”

Earlier during the day, a five percent increase in the KSE-30 index from the previous trading day’s close led to a market halt as per stock market regulations. All equity and equity-based markets were suspended, as per a notification of the PSX.

Markets reopened around 10:42 a.m. local time (0542 GMT).


Pakistan says militants attempted drone attacks inside its territory, Afghanistan says carried out airstrikes

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Pakistan says militants attempted drone attacks inside its territory, Afghanistan says carried out airstrikes

  • Islamabad says anti-drone systems intercepted devices in three cities
  • Kabul says it carried out airstrikes in Pakistan after earlier strikes in Afghanistan

ISLAMABAD: Pakistan on Friday said militants attempted to launch small drones inside its territory, while Afghanistan’s ministry of defense claimed it had carried out retaliatory airstrikes in “various areas of Pakistan,” marking a sharp escalation in cross-border hostilities between the bitter neighbors.

The developments follow Pakistani airstrikes earlier this week targeting what Islamabad said were Tehreek-e-Taliban Pakistan (TTP) and Daesh militant camps inside Afghanistan. Pakistan said those strikes killed more than 100 militants, while Kabul said women and children were killed and condemned the attacks as violations of Afghan sovereignty.

On Thursday night, Afghanistan’s Taliban authorities said they had launched “large-scale offensive operations” against Pakistani military bases and installations, prompting Pakistan to say its forces were responding to what it described as unprovoked fire along the shared border. 

Pakistan’s Information Minister Attaullah Tarar said on Friday afternoon militants had attempted drone activity inside three Pakistani cities.

“Fitna al khawarij [TTP] terrorists have attempted to launch small drones in Abbottabad, Swabi and Nowshera. Anti Drone Systems have brought down all the drones. No damage to life,” Tarar said.

“The incidents have again exposed direct linkages between Afghan Taliban Regime and Terrorism in Pakistan.”

Afghanistan’s Ministry of National Defense, in an X statement, said it carried out airstrikes inside Pakistan.

“The Ministry of National Defense of Afghanistan today, before noon, at around eleven o’clock local time, carried out airstrikes in various areas of Pakistan,” the statement said.

“These attacks were carried out in response to last night’s aerial incursions by Pakistani forces in Kabul, Kandahar, and Paktia.”

Pakistan has not confirmed any damage from the Afghan claim.

Earlier Friday, the Pakistani prime minister’s spokesman Mosharraf Zaidi said counter-strikes were continuing after what Islamabad described as unprovoked Afghan fire along the border.

“A total of 133 Afghan Taliban are confirmed killed, more than 200 wounded,” Zaidi said in an X update. “Twenty seven (27) Afghan Taliban posts have been destroyed, and nine (9) have been captured.”

On the Afghan side, the defense ministry claimed 55 Pakistani soldiers were killed and that two garrisons and 19 posts were captured. Pakistani officials denied losing any posts. None of the casualty figures or battlefield claims from either side could be independently verified.

Amid the escalating rhetoric, Pakistan’s State Minister for Interior Talal Chaudhry urged Afghanistan’s Taliban leadership to change its approach.

“They must behave like a state, not like a guerrilla force,” Chaudhry told reporters in Islamabad. “Until their behavior changes, we will adopt every possible option to make it change.”

Chaudhry said the United Nations had confirmed that over two dozen militant groups operate from Afghan territory and added that brotherly countries “do not send militants who slaughter our youth, attack school buses carrying children, or make places of worship and innocent women unsafe.”

Cross-border violence has intensified in recent weeks, with Pakistan blaming a surge in suicide bombings and militant attacks on insurgents it says are based in Afghanistan. Kabul denies providing safe havens to anti-Pakistan militant groups.

The latest clashes mark the third major escalation between the neighbors in less than a year. Several regional countries, including China, Russia, Saudi Arabia and Iran, have urged restraint as operations on both sides continued Friday.

The confrontation unfolds against a backdrop of growing friction over Afghanistan’s regional alignments. Pakistan has repeatedly accused the Taliban authorities of allowing Indian influence to expand in Afghanistan, an allegation Kabul has rejected.

Pakistan’s defense minister Khawaja Asif earlier said the Taliban government had turned Afghanistan into “a colony of India.”

Islamabad has long accused India of using Afghan territory to support anti-Pakistan militant groups, a charge New Delhi denies.