PSX Pakistan Stock Exchange Boosts Cybersecurity Amid Tensions
The PSX's decline was largely attributed to investor fears, and the government's swift response to enhance cybersecurity and provide clarity to markets has helped to alleviate some concerns, with analysts hoping for a short-lived conflict and mediation from global powers.
Pakistan has enhanced its cybersecurity measures to protect its capital market infrastructure from potential Indian hacking attempts, following a significant decline in the Pakistan Stock Exchange (PSX) due to investors' fears of military action by India against Pakistan.
The Securities and Exchange Commission of Pakistan (SECP) has blocked overseas access to certain websites as a precautionary measure, while the finance ministry has assured stakeholders that robust measures are being implemented to safeguard Pakistan's economic infrastructure and maintain business continuity. The PSX witnessed a decline of over 3,500 points on May 7, 2025, with the benchmark KSE-100 index decreasing by 6,560.82 points (5.78%) to 107,007.68.
Analysts attributed the sell-off to heightened geopolitical tensions following reports of Indian strikes on multiple Pakistani locations. However, they remained cautiously optimistic, hoping the conflict would remain short-lived with likely mediation from global powers. The National Computer Emergency Response Team (CERT) has denied rumors of a cyberattack on the country's banking system, stating that all ATM and online banking services are fully operational.
The finance minister briefed UK Minister of State for South Asia Hamish Falconer on India's aggression against Pakistan and called on the international community to condemn India's actions. The SECP has also held an emergent meeting to assess the situation and has reaffirmed its commitment to ensuring continuity in capital market operations.
As tensions between India and Pakistan continue to escalate, the Pakistani government's efforts to bolster cybersecurity and maintain stability in the capital market are crucial to mitigating the impact of potential threats and ensuring the continuity of economic activities.