In the wake of the recent Pahalgam terror incident, India’s sanctions have had a significant impact on Pakistan’s economy, leading to a sharp decline in the Pakistan Stock Exchange. The KSE-100 index witnessed a substantial drop of 2.12% following India’s actions. These sanctions included the halt of the Indus Waters Treaty, closure of the Wagah-Attari border, and the revocation of visa privileges for Pakistani citizens. The economic repercussions of these measures have been felt across various sectors in Pakistan, with investors and businesses closely monitoring the situation. The escalating tensions between the two countries have raised concerns about the stability of the region and the potential for further economic ramifications. As the situation continues to unfold, stakeholders in both India and Pakistan are closely watching for any developments that could impact their respective economies.