Pakistan stock market: KSE 100 index dips as New Delhi intensifies diplomatic pressure on Islamabad

Pakistan stock market's benchmark index, Karachi Stock Exchange 100 (KSE 100), dipped 0.33% in intraday trade on Monday, May 19, as India intensified diplomatic pressure on its neighbouring country.

The Indian government has decided to send all-party delegations to 33 global capitals to brief global leaders on India's resolve to deal with terrorism firmly against the backdrop of Operation Sindoor.

Pakistan stock market today

The KSE 100 index opened in the green at 120,166.7, but soon erased losses to trade in the red. It hit the day's low of 119,250.68, as against its previous close of 119,649.14.

This is the second straight day of fall for the Pakistan stock market's flagship index. Meanwhile, the index has dipped in three of the last four trading sessions.

However, so far in May, the KSE 100 index has risen over 7%, boosted by a ceasefire between India and Pakistan following four days of heavy clashes.

India ups diplomatic pressure on Pakistan

As part of its diplomatic outreach following Operation Sindoor, which included targeted strikes on terrorists' camps in Pakistan and Pakistan-occupied Kashmir, 59 members of Parliament, former ministers and politicians, will be part of the seven delegations that will travel to 32 countries and the EU headquarters in Brussels.

The delegation, cutting across party lines, is a diplomatic outreach mission which aims to convey India’s firm resolve to combat terrorism in the context of Operation Sindoor.

Additionally, the government has also taken other steps against Pakistan after an attack on civilians in Pahalgam, Kashmir, which left 26 people dead. One key action was India’s termination of the Indus Waters Treaty.

"The Indus Waters Treaty of 1960 will be held in abeyance with immediate effect, until Pakistan credibly and irrevocably abjures its support for cross-border terrorism. This has far-reaching consequences for Pakistan, a country heavily dependent on the Indus river system for 80% of its 16 million hectares of agricultural land and 93% of its total water use," the government said.

India closed the Attari-Wagah border and imposed a total ban on Pakistani artists. The Defence/Military, Naval and Air Advisors in the Pakistani High Commission in New Delhi are declared Persona Non Grata. The overall strength of the High Commissions will be brought down to 30 from the present 55 through further reductions, a PIB statement said.

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