Afghanistan(1978-2012) An Advantage or Curse for Pakistan Economy

Introduction to Afghanistan
Afghanistan is located between Central Asia, South Asia and the Middle East It neighbors Iran, Pakistan, Uzbekistan, Tajikistan, Turkmenistan and China

Recession in economy
The countrys near-total dependence on aid. More than 90 percent of the national budget comes from foreign donations. Much of the Afghan governments revenue is derived from American military and civilian spending. In last some year Income per person in Afghanistan is $528 a year.

Rise in economy
The economy of Afghanistan has improved since 2002 due to the foreign aid and investment Improvements in agricultural production Afghanistan still remains one of the poorest and least developed countries in the world that is highly dependent on foreign aid Now the capita per income lies $1000 The Karzai administration along with international donors have remained committed to improving access to these basic necessities by prioritizing infrastructure development, education, housing development, jobs programs, medical care, and economic reform

MAJOR ECONOMIC INDICATORS

GDP: $29.99 billion Per capita Income: $1000 Growth rate: 7.1% Labor force: 15 million Inflation rate: 7.7% Unemployment: 36%

GDP Composition
40 35 30 25 20 15 10 5 0 Services Industry Agriculture GDP

Per capita income

1050 1000 950 900 850 800 750 2009 2010 2011

Major Export Partners

30 25 20 15 10 5 0 Percentage india pakistan USA Turkmenistan

Major Import Partners

30 25 20 15 10 5 0

Pakistan USA India Russia

Major Export Items

Opium Fruits and Nuts Hand woven carpets Wool Cotton Precious and semi precious gems

Major import items

Food Textile Petroleum products Machinery Tea Synthetic fibres

Relationship with Pakistan

Very close yet tense relationship Ups and downs have been seen The Pakhtunistan issue, the Soviet union in the 80s, Pakistans close relationship with the Taliban and the terrorist attacks of 9/11 have frequently affected the relationship The two countries share a 2500 km long border known as The Durand Line

Impact on Pakistan
Smuggling of food items Unauthorized entry of weapons and militants Shifting of refuges in Pakistan Unsocial activities of militant through Afghanistan in Pakistan

Impact on Pakistan
Pakistan found the new target market for exporting like petroleum products Import of different items Legal cheap labour from Afghanistan Pakistan being the nearest country so it can strong hold the afghan market as compared to others

Conclusion
In conclusion we can say that Afghanistan has had both negative and positive impact on the Pakistani economy after the war. We have benefited from cheap labour and a new market full of opportunities. On the other hand we have been harmed due to the security situation in Afghanistan which has spilled over into Pakistan causing terrorism and militancy to rise and effect the economic growth of Pakistan.

Thank you.