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Karachi Stock Exchange Plunges 7%, Trading Halted The Karachi Stock Exchange (KSE) experienced a significant downturn on May 8, 2025, prompting a temporary halt in trading. The KSE-100 index plummeted by over 7%, a substantial drop attributed to reports of drones being shot down in major Pakistani cities, including Karachi and Lahore. Drone Reports Trigger Market Panic News of the drone incidents sparked widespread panic among investors, leading to heavy selling pressure in the market. This exacerbated existing concerns about the economic vulnerabilities of Pakistan.