Pakistan stock market tumbles and triggers trading halt, geopolitical tensions escalate.

date
02/03/2026
The Pakistani stock market plummeted on Monday, as tensions in the Middle East escalated following military strikes by the United States and Israel against Iran. According to a statement released by the Pakistan Stock Exchange, the KSE-30 index fell by 9.6% in early trading, triggering a one-hour trading halt. The exchange announced that trading would resume at 10:27 local time. Meanwhile, the Pakistani rupee remained relatively stable, with the exchange rate hovering around 279.86 to 1 US dollar. Pro-Iranian protesters have also been seen across Pakistan, with clashes between protesters and police resulting in at least 10 deaths in Karachi, a major port city in Pakistan, on Sunday. Tensions with Afghanistan have also escalated, with Pakistan declaring a state of "open war" with Afghanistan. Both sides have engaged in cross-border attacks, extending as far as the Afghan capital, resulting in at least hundreds of casualties.