Pakistan has engaged in intense conflict with Afghanistan along the Durand Line. And under that blow, Karachi's Pakistan Stock Exchange (PSX) virtually collapsed. On February 27, when Pakistan's stock market opened at 9:20 AM, within a short time, the KSE-100, one of Pakistan's stock market's key benchmarks, fell by nearly 2 per cent, or 3000 points.
All sectors have been hit. Almost all sectors of Pakistan's industrial field have suffered major blows. Automobiles, cement, banks, agricultural products, oil, and electricity – all sectors have witnessed a collapse. The stock prices of major companies on Pakistan's stock exchange have also seen massive declines. When Operation Sindur took place, Pakistan's stock market had also fallen flat on its face.
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Fierce clashes are ongoing in the border areas between Pakistan and Afghanistan. Pakistan has conducted air strikes on multiple locations in Afghanistan. Afghanistan has also retaliated. Both sides have claimed to have inflicted major damage on each other's military bases. This conflict between Afghanistan and Pakistan is unprecedented in recent history. Events like air strikes and attacks with ammunition have occurred along the Durand Line. Speculation has also spread that Taliban chief Hibatullah Akhundzada has died in Pakistan's attack. Pakistan has conducted airstrikes in Afghanistan's Kabul, Kandahar, Nangarhar and Paktia areas.
Pakistan's economy is already under pressure from various directions. There is immense inflationary pressure. This war in the midst of all this is believed to push Pakistan's economy even closer to the edge of the abyss.
