The index had declined 6% last week after tensions between India and Pakistan had escalated.
Monday’s move comes after India and Pakistan agreed to halt all military action from 5 PM on the evening of Saturday, May 10, and the International Monetary Fund (IMF) approved two financing decisions for the country, disbursing around $2.4 billion under its economic reform and climate resilience programmes.
The Pakistan Stock Exchange has remained volatile in the past week after India conducted Operation Sindoor, targeting terrorist camps in Pakistan.
The strike hit nine terror-linked sites — four in Pakistan and five in Pakistan-occupied Kashmir — in response to the recent terror attack in Pahalgam, Kashmir. The move marks a serious escalation in cross-border tensions.
The DGMOs of India and Pakistan are set to hold talks at 12 pm on Monday, May 12.
First Published: May 12, 2025 10:42 AM IST
