The Pakistan Stock Exchange (PSX) benchmark index, the KSE-100, tumbled nearly 2,000 points in early trading, hovering around 173,812.
The sharp decline reflects renewed investor anxiety as tensions between the United States and Iran continue to escalate, casting a shadow over emerging market sentiment.
Prior to that, the index had already shed 2,500 points to trade near 183,758, driven by immediate market reaction to the initial reports of US military action.
This latest drop extends a severe sell-off that has already battered the index.
In recent sessions, the KSE-100 suffered a massive decline of 6,400 points to hover around 179,792, following the launch of US military airstrikes against Iran. Prior to that, the index had already shed 2,500 points to trade near 183,758, driven by immediate market reaction to the initial reports of US military action.
The sustained selling pressure underscores the vulnerability of regional markets to geopolitical shocks.
Investors are increasingly risk-averse, with capital flows likely to remain constrained until a clearer diplomatic or military resolution emerges.
The volatility highlights the broader contagion risk from Middle Eastern conflicts to emerging economies with significant exposure to global sentiment shifts.