KARACHI: The Pakistan Stock Exchange (PSX) plunged more than 1,900 points on Friday, as investor sentiment soured following Israel’s strikes on Iran, triggering fears of wider regional escalation.

The benchmark KSE-100 index fell 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12.

Shares traded largely in the red, mirroring losses across regional and global markets after the Israeli attacks shook investor confidence, according to a market review by Pakistani brokerage Topline Securities.

“Geopolitical tensions after Israel’s attack in Iran weighed down on world equities, including the KSE100,” Raza Jafri, Head of Intermarket Securities, told Arab News. “In particular, if a geopolitical risk premium gets added to international oil prices on a prolonged basis, it could negatively affect the outlook for the current account deficit and inflation, given more than 25 percent of Pakistan’s import bill comprises of petroleum products.”

He noted that Pakistan was now “much more disciplined” economically, having avoided fuel subsidies and refrained from using foreign exchange reserves to support the currency. This, he said, would help the country better withstand a potential oil price shock than in the past.

Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, said stocks declined across the board in response to the strikes.

“Slump in global equities on geopolitical risks and weakening rupee played catalyst role in panic selling at PSX,” he said.

Israel launched strikes on Iran earlier on Friday, claiming Tehran was “very close” to developing a nuclear weapon. The attacks reportedly targeted nuclear facilities, scientists, and senior military commanders.
 

ISLAMABAD: Pakistan on Friday advised its citizens planning religious travel to Iran and Iraq to reconsider their plans, citing security concerns after Israeli strikes on Iranian military and nuclear facilities earlier in the day.

The advisory mentions Pakistani “Zaireen,” or Shi’ite Muslim pilgrims who travel to Iran and Iraq to visit sacred religious sites, particularly in Mashhad, Qom, Najaf and Karbala.

The region has seen heightened tensions following Israeli attacks on key installations in Iran, prompting fears of broader instability.

“In view of the evolving security situation in the region, the Zaireen from Pakistan are advised to reconsider their travel plans to Iran and Iraq,” the foreign office said in a brief statement issued in Islamabad.

According to a senior government official who spoke on condition of anonymity, the number of Zaireen traveling to Iran fluctuates, and most do not contact the Pakistani diplomatic missions.

“Currently, there are an estimated 5,000 Zaireen in Iran,” he said, adding that Pakistan’s embassy in Tehran and its consulates remain available to assist citizens.

“Any Pakistani requiring guidance or support is encouraged to contact our relevant diplomatic missions, which will, as always, provide necessary assistance and facilitate their return to Pakistan,” the official added.

While no evacuation plans have been announced, the authorities say they are closely monitoring the regional situation.