After the recent Pahalgam terror incident, India imposed sanctions on Pakistan, leading to a significant impact on the Pakistan Stock Exchange. The KSE-100 index witnessed a sharp decline of 2.12% in response to India’s actions. These sanctions included the halt of the Indus Waters Treaty, the closure of the Wagah-Attari border, and the revocation of visa privileges for Pakistani citizens. The diplomatic tensions between the two countries have escalated, causing economic repercussions in Pakistan. The stock market’s reaction highlights the sensitivity of the situation and the potential long-term consequences of strained relations between India and Pakistan.