In the wake of the Pahalgam terror incident, India’s retaliatory measures have had a significant impact on Pakistan’s economy. The Pakistan Stock Exchange experienced a sharp decline, with the KSE-100 index falling by 2.12%. India’s sanctions included the suspension of the Indus Waters Treaty, the closure of the Wagah-Attari border, and the revocation of visa privileges for Pakistani citizens. These actions have added further strain to the already tense relations between the two neighboring countries. The economic repercussions of these measures are likely to be felt across various sectors in Pakistan, highlighting the interconnectedness of geopolitical tensions and financial markets. As both countries navigate this latest escalation in tensions, the implications for regional stability and economic growth remain uncertain. The impact of India’s sanctions on Pakistan’s economy underscores the importance of diplomatic efforts to address conflicts and prevent further escalation. The international community will be closely monitoring the situation as it continues to unfold, with implications for global security and economic stability in the region.