New Delhi
After the terrorist attack in Pahalgam in Jammu and Kashmir, India’s strict diplomatic stance and punitive measures have caused earthquake in Pakistan. All other things are covered, but everything is clear in the stock market. Pakistan’s Sensex (Karachi Stock Exchange) KSE-100 Index 2,224.45 (-1.90%) falls at 115,001.70 at the time of trading at 115,001.70.
Under a remarkable increase in stress, India suspended the Indus Water Treaty (IWT) with Pakistan after a deadly attack in Pahalgam, Kashmir, killing at least 26 people and 17 others were injured. In this incident, tourists were targeted in the popular summer destination, due to which Pakistan has called a meeting of the National Security Committee to assess the fast deteriorating situation.
The long-standing agreement for water-distribution, suspending IWT reflects a sharp diplomatic move and it has occurred amidst extensive punitive measures by India. These steps are already having an economic impact on Pakistan.
Meanwhile, the International Monetary Fund (IMF) has reduced Pakistan’s predictions to 2.6% for the growth of GDP for the current financial year, lower than earlier estimates. The increase for the next financial year is now estimated 3.6%, while inflation is expected to increase to 7.7%.
The new trade fee levied on Pakistani goods is expected to harm the country’s major exports. A government think tank has warned that it should act as a warning for economic diversification.