Karachi: The KSE-100 index experienced a significant decline, losing 2,206 points to close at 115,020, with a trading volume of 505 million shares. The market's downturn came as geopolitical tensions between Pakistan and India escalated, adding uncertainty to the financial landscape.

The trading session saw notable activity concentrated in the Cement, Technology, and Foods sectors. Despite the overall market slump, stocks such as PKGP, UPFL, and PAKT recorded gains based on price changes. In contrast, AGL, FCEPL, and NML were among the top decliners.

The economic strain was further compounded by Pakistan's decision to close its airspace and suspend trade with India. This move coincided with India's formal notification to Pakistan regarding the suspension of the Indus Waters Treaty, raising concerns about the impact on Pakistan's agricultural sector.

In addition to geopolitical concerns, the State Bank of Pakistan highlighted potential risks stemming from protectionist US tariffs, while the finance ministry maintained that inflation would remain stable in April. Meanwhile, the country's forex reserves fell by $226 million.

The situation has led to a sharp decline in Pakistan's bonds, reflecting investor unease over rising tensions with India. In an effort to address economic challenges, the government is in discussions with China, Saudi Arabia, and the UAE.

Amid these developments, the Sindh government has approved Rs12.5 billion for 20 new development projects, projecting savings of Rs1.567 trillion. Additionally, the government is considering ending the Federal Excise Duty on property transactions to stimulate the real estate market.

As the market grapples with these multifaceted issues, the banking sector is expected to expand by 15.8% in 2024, offering a glimmer of hope for economic growth in the coming year.