How Afghanistan’s situation affects Pakistan’s Economy

Pakistan’s stability has been severely undermined by the twin blowback from Afghanistan.
first Russian operation that left military weapons and drug lords and 3 million Afghan refugees.
secondly the unintended consequences of the 2001 US intervention that pushed the conflict into
Pakistan and propelled the military forward.


However, peace and stability in Afghanistan and the region are essential to the full recovery of the Pakistani economy and to the stability of the system. Under such circumstances, good relations with Pakistan can go a long way in promoting stability and development. The opposite is the most likely outcome, however, given the deep-seated grievances of both parties involved in the ongoing conflict.

The situation in Afghanistan has had a devastating effect on Pakistan’s economy in many ways,
such as the overall growth rate in all major economic sectors, because there is no trade in Central Asian countries due to the dire situation in Afghanistan. Pakistan continues to pay a heavy price both in terms of economic and security conditions in the Afghan war. Pakistan’s economy has been hit hard by security while Pakistan has faced many deaths, injuries and other accidents. In line with this, both men and material objects, have been diverted to address the security challenges that have arisen over the past few years. This situation has disrupted Pakistan’s normal economic and trade activities which not only resulted
in higher business costs but also created disruptions to production cycles.

The security situation will be the key to future investment flows. Currently, after the Taliban take power Pakistan will face many challenges including, the influx of troops and Al-Qaeda into Pakistan from Afghanistan. It will signal an increase in violent retaliation in the “country” of Pakistan.
It could lead to the influx of more Afghan refugees, with more disruptive effects on Khyber Pakhtunkhwa and Baluchistan. Although the positive impact of the current Afghan state in Pakistan will be i.e. Senior executives should be involved directly in order to maintain the relationship. The shared language and traditions of Pashtun on both sides of the Durand line provide an opportunity to build trust. Explore border control options i.e. common sense holds that the Durand Line is the third train in Afghanistan-Pakistan relations that, if promoted, closes the dialogue. Prepare military-to-military interactions. Creating a climate of trust that enhances trade, investment, human trafficking, military and security tests and recognition of Taliban military victories.

Afghanistan is like a Pakistani national bridge to the Central Asian countries, so Pakistan attaches
importance to Afghanistan so that it can access the natural resources of Central Asian countries. Pakistan also provides an effective route to Afghanistan for international trade. Relations between Pakistan and Afghanistan have been tense. The influx of borders, refugees, drug trafficking, terrorist groups, and conflicts over anti-terrorism policy and negotiations with terrorist networks have contributed to deep-rooted hopelessness and shattered relationships. Peaceful economic cooperation between Afghanistan and Pakistan and developed trade and transport hubs will help connect South Asia to Central Asia. Exports of economic growth are expected to increase international employment in both countries and provide foreign exchange for cheap commodities. Afghan officials see India and Pakistan as Afghanistan’s
two main markets but face obstacles to achieving this goal.

The governments of Pakistan and Afghanistan need to make more good arrangements for beneficial trade relations mutually for the stability of economic growth of the country.

The Afghan economy is predominantly agricultural. Agricultural production is prohibited from relying almost entirely on it fluctuating winter snow and spring rainwater; irrigation systems are old.
Some irrigation networks and other agricultural resources were destroyed in the military conflict
Afghanistan’s agricultural sector has deteriorated during more than two decades of conflict,
and makes the majority of the world’s population dependent on international food aid.
In comparison, Pakistan and Iran have undergone agricultural reforms in recent years. They want to increase productivity and strengthen the contribution of their agricultural industry to the national economy.

Agriculture and minerals are the two main potential drivers of future economic growth, as well as the foreign exchange reserves and government revenues needed to offset the expected decline in foreign aid. But in both cases, agriculture offers the greatest potential for job creation. It also has the potential to inc ease job creation, benefit women and other disadvantaged groups (poor, landless, and nomadic), and reduce poverty and food insecurity in rural areas. Pakistan plays a major role in this, Pakistan needs to invest in the agricultural and mining sector by opening new industries in Afghanistan.

For almost three decades Pakistan and Afghanistan are in a very precarious situation. Now
Pakistan must have good relations with the current Taliban government. Pakistan will benefit
from Taliban showing resilience to Durand Line, Pakistan has spent millions of dollars over the past few years to strengthen and divide the border. Strong and peaceful relations of both government will result as a peaceful and prosperous Pakistan and Afghanistan.