Pakistan stock market crashes 10% as Middle East tensions escalate
The sharp selloff triggered a temporary trading halt, with market activity suspended for an hour after the steep decline. The KSE-30 index also dropped 9.8 per cent during the session.
- Mar 2, 2026,
- Updated Mar 2, 2026 3:30 PM IST
Pakistan's benchmark KSE-100 index plunged around 10 per cent on Monday amid escalating geopolitical tensions in the Middle East and the country's ongoing military operation against Afghanistan.
The sharp selloff triggered a temporary trading halt, with market activity suspended for an hour after the steep decline. The KSE-30 index also dropped 9.8 per cent during the session, reflecting widespread selling pressure.
The rout in equities came against the backdrop of mounting unrest across Pakistan following US-Israel strikes on Iran. The attacks, carried out over the weekend, reportedly killed Iran's Supreme Leader Ali Khamenei, triggering retaliatory Iranian strikes on Israel and other countries, including Gulf nations hosting US military bases.
US President Donald Trump signalled that the joint US-Israeli military assault could continue for weeks, heightening fears of a broader regional conflict and adding to global market jitters.
Separately, fighting between Afghan Taliban forces and Pakistan intensified amid rapidly escalating cross-border hostilities. The violence comes days after Afghanistan's Taliban administration said it remained open to negotiations even as tensions with Pakistan spiralled into what Taliban officials described as an "open war" following Pakistani airstrikes targeting multiple Afghan cities.
Meanwhile, Pakistan's Prime Minister Shehbaz Sharif chaired a high-level meeting to review the regional and internal security situation in view of the recent developments in Iran and the ongoing military operation against Afghanistan. Sharif also postponed his planned visit to Russia amid the prevailing global tensions.
(With inputs from Reuters)
Pakistan's benchmark KSE-100 index plunged around 10 per cent on Monday amid escalating geopolitical tensions in the Middle East and the country's ongoing military operation against Afghanistan.
The sharp selloff triggered a temporary trading halt, with market activity suspended for an hour after the steep decline. The KSE-30 index also dropped 9.8 per cent during the session, reflecting widespread selling pressure.
The rout in equities came against the backdrop of mounting unrest across Pakistan following US-Israel strikes on Iran. The attacks, carried out over the weekend, reportedly killed Iran's Supreme Leader Ali Khamenei, triggering retaliatory Iranian strikes on Israel and other countries, including Gulf nations hosting US military bases.
US President Donald Trump signalled that the joint US-Israeli military assault could continue for weeks, heightening fears of a broader regional conflict and adding to global market jitters.
Separately, fighting between Afghan Taliban forces and Pakistan intensified amid rapidly escalating cross-border hostilities. The violence comes days after Afghanistan's Taliban administration said it remained open to negotiations even as tensions with Pakistan spiralled into what Taliban officials described as an "open war" following Pakistani airstrikes targeting multiple Afghan cities.
Meanwhile, Pakistan's Prime Minister Shehbaz Sharif chaired a high-level meeting to review the regional and internal security situation in view of the recent developments in Iran and the ongoing military operation against Afghanistan. Sharif also postponed his planned visit to Russia amid the prevailing global tensions.
(With inputs from Reuters)