Pakistan's Economy are going to crisis for Taliban?

[rinkidas14]

Amid decreasing Foreign Direct Investment (FDI) floes, Pakistan's economy is expected to shrnik further, flowing Afghanistan's current situation.

According to Dawn (Pakistan's official news pepar), the consistent decline in flows into Pakistan in recent years should worry the country's economic managers.

The net flows fell by just under 39% year-on-year in July in continuation of the trend witnessed last fiscal when,
Long-term, non-debt-creating investments plummeted by 29% to 1.85 billion dollars from the previous year, the Dawn reported.

      Is this right?

[Argoo]

Yes, the situation in Afghanistan is likely to continue to deteriorate and this will have a negative impact on the economies of neighboring states and, above all, Pakistan. The Taliban who came to power proclaimed the creation of the Islamic Emirate of Afghanistan in the country and in practice this would mean a tough totalitarian regime under the guise of Sharia law. Already in the first days, the violation of human rights there reached such a scale that the entire civilized world realized that this must be urgently countered. Afghanistan is a very poor country that relied on economic aid from developed countries. The central bank of this country now has about $ 9.4 billion, which are mainly located in the banks of the United States and other countries, and these funds have already been frozen in foreign banks. I think there will be military intervention soon. First of all, we are talking about possible attempts by the United States to bomb its own military equipment, which they transferred to the former government forces of Afghanistan, so that it would not go to the Taliban or be transferred to Russia or China. In all likelihood, in the future we will see the complete economic isolation of the Taliban, and therefore of Afghanistan, which will also have a negative impact on neighboring states and especially Pakistan, which has always provided assistance to the Taliban.

[ARTURVH]

I don’t understand what point of view you want to explain. Pakistan’s economy has always been on the verge of collapse. Afghanistan’s current economic situation is also extremely bad, with little impact on Pakistan. The country with the largest real investment in Pakistan is China. The impact of China's national investment policy on Pakistan will be obvious.

[kryptqnick]

Oh, can you provide the sources that claim that the Pakistan's economy will suffer because of the Taliban's takeover of Afghanistan? I just don't see why that would happen, to be honest. I've seen that the economy is expected to grow by 4% in 2022, but the forecast was made prior to the Taliban's takeover. And then there's the fact that Pakistan is supportive of the Taliban, and no wonder that's the case because Pakistan basically created it.
Taking this into account, I don't see why their economy would decline. Afghanistan's economy is about to collapse because it was heavily dependent (up to 80%) on foreign investments that aren't going to continue (unless the Taliban really shows significant improvements of their policies), but Pakistan has nothing to do with it.

[palle11]

but Pakistan has nothing to do with it.

My view on the Op comment is also that it is matter not concerning only Pakistan if you looking at countries that may be affected economically on the trouble in Afghanistan and Taliban. China is there, likewise US that are evaquating there citizens and do we also say that US economy will suffer or go into crises because of the trouble in Afghanistan? Not really. Except it goes out of proportion and goes into full war, then aligns can come in and we can start analysing base on that. For now is just interesiI see.

[bryant.coleman]

The risk for Pakistan is that the conflict in Afghanistan can spill across the border. The main support base for the Taliban comes from the Pashtun ethnic group. Although this ethnic group comprises of around 40% of the population in Afghanistan, in absolute numbers, they are more numerous in Pakistan. For many decades, the Pashtun majority province of Khyber witnessed a bloody civil war, which was contained only a few years ago. Now there is a good chance that conflict will break out once again in this region.

[tippytoes]

The risk for Pakistan is that the conflict in Afghanistan can spill across the border. The main support base for the Taliban comes from the Pashtun ethnic group. Although this ethnic group comprises of around 40% of the population in Afghanistan, in absolute numbers, they are more numerous in Pakistan. For many decades, the Pashtun majority province of Khyber witnessed a bloody civil war, which was contained only a few years ago. Now there is a good chance that conflict will break out once again in this region.

And that possible conflict may threaten those investors to invest in Pakistan. But if Taliban will respect their promise about peaceful government and follow according to sharia law, then, conflict may not arise. But I am guessing some investors will be too cautious as they don't know the future yet in this region. We will see that in the coming months the impact of this Taliban rule. Right now, it is quite early to deduce things.

[Hydrogen]

Under the taliban, we could see afghanistan abolish democracy and free market capitalism.

Replacing them with a totalitarian dictatorship that technically owns and controls everything.

It could cause an economic contraction, which could pull pakistan's economy down with it. Depending on how close of trading partners they are.

America's withdrawal wiping out last vestiges of democracy in afghanistan is one of many unreported angles that could use more attention.

[semobo]

Also their bonds values are decreasing in the EU and even they don't accept their bonds for trade which caused the value dropped by 5% until now and its expected to rise depends on how they are going to deal with Afghan Taliban.

[ultrloa]

Amid decreasing Foreign Direct Investment (FDI) floes, Pakistan's economy is expected to shrnik further, flowing Afghanistan's current situation.

According to Dawn (Pakistan's official news pepar), the consistent decline in flows into Pakistan in recent years should worry the country's economic managers.

The net flows fell by just under 39% year-on-year in July in continuation of the trend witnessed last fiscal when,
Long-term, non-debt-creating investments plummeted by 29% to 1.85 billion dollars from the previous year, the Dawn reported.

      Is this right?

Yes most provably that will happen to them since imagine how their economy will run if many people are in fear that they will be disturbed or killed by taliban so for this chaos for sure there economy is at risk. We don't know how long this crisis will ends since this war is I think will never end as long as both parties will not have a mutual agreement on how they run their country progressively.

[zanezane]

I don’t understand what point of view you want to explain. Pakistan’s economy has always been on the verge of collapse. Afghanistan’s current economic situation is also extremely bad, with little impact on Pakistan. The country with the largest real investment in Pakistan is China. The impact of China's national investment policy on Pakistan will be obvious.

Really, is it always been that way? Then how come they're still doing just fine and they even have this seeding projects that aims to grow a lot of trees, pretty sure that it's an expensive project plus don't they have a nuclear arsenal?

[bryant.coleman]

And that possible conflict may threaten those investors to invest in Pakistan. But if Taliban will respect their promise about peaceful government and follow according to sharia law, then, conflict may not arise. But I am guessing some investors will be too cautious as they don't know the future yet in this region. We will see that in the coming months the impact of this Taliban rule. Right now, it is quite early to deduce things.

There can be no peace as long as Taliban is in power. Already they have summarily executed hundreds (if not thousands) of former government employees and anyone who they suspect is not following the strict dress code. They have fired live bullets on ordinary civilians who were waving Afghan national flag. And here you are claiming that they have promised "peaceful government". I know that there are a lot of people around the world who support the Taliban, either in the open, or in secret. I have only sympathy for such people.

[hugeblack]

Unless there is a political pause in Afghanistan, I expect that sanctions will be imposed on the economic and political entities in the Taliban government, and all aid funds will be frozen, thus stifling the Afghan economy.
Unfortunately, the Afghan economy is highly dependent on aid, and with any sanctions imposed, it will be impossible for the economy to grow in a healthy manner, if we ignore the country's slide into the axis of civil wars.

[pealr12]

Without reading too much, you could already guess where the economy is heading, definitely almost all foreign investment and aid will pull out of such an unstable country ruled by Talibans, who would want to do business in such a hostile environment, I don't expect anything less, economic flourish more in a conducive and enabling environment and not in such places, it is a difficult journey for the people over there.

[Fortify]

Amid decreasing Foreign Direct Investment (FDI) floes, Pakistan's economy is expected to shrnik further, flowing Afghanistan's current situation.

According to Dawn (Pakistan's official news pepar), the consistent decline in flows into Pakistan in recent years should worry the country's economic managers.

The net flows fell by just under 39% year-on-year in July in continuation of the trend witnessed last fiscal when,
Long-term, non-debt-creating investments plummeted by 29% to 1.85 billion dollars from the previous year, the Dawn reported.

      Is this right?

There's such much irony in how Pakistan is governed, they spent so much to support the Taliban insurgency because they hate the thought of American "infidels" controlling a neighbor next to them. However the Americans being there was giving them some strategic support, not to mention all the economic benefits that added up over time (a bribe here, aid packages or a over land logistic shipments). Now that the Agfhan taliban do not have foreigners to go after so easily, they will slowly become more extreme and start to target countries around them that do not live up to a perverse version of ideology. Pakistan will eventually reap what it sowed and falling foreign capital inflows will be the start of it.. They'll probably go begging to China at some point.

[Gyfts]

I don’t understand what point of view you want to explain. Pakistan’s economy has always been on the verge of collapse. Afghanistan’s current economic situation is also extremely bad, with little impact on Pakistan. The country with the largest real investment in Pakistan is China. The impact of China's national investment policy on Pakistan will be obvious.

China also will capitalize on Afghanistan, so will Russia. They're already cutting deals with the Taliban and so whatever investment opportunities Afghanistan might provide, China will be sure to set up shop. Also makes you think if Afghanistan and other middle eastern countries will begin to have a dependency on China if any sort of relationship is established. Having terrorist groups concede to the Chinese is the most predictable outcome, but anything's possible I guess.

[dothebeats]

Pakistan harbored some terrorists (ehem) in the past, and with this link that they had with terrorist groups, a lot of huge names in the world economy are wary of placing some investments on the country. Add to that the lack of raw materials, manpower, and other resources on the country which further rubs salt to Pakistan’s economic wounds. The Taliban’s rise to power is perhaps one of those things that sealed Pakistan’s economic fate. We would see a continuous decline from here, and it will not be a pretty sight that’s for sure.

[just_Alice]

Why would Pakistan’s economy suffer? You’re talking as if Afghanistan and the Taliban are interdependent. But the fact is, it’s the Taliban that is dependent on Pakistan's support, not vice versa.

The only reason why Pakistan’s economy could suffer problems is if because of providing support for the Taliban other countries might impose sanctions.

[Shenzou]

Amid decreasing Foreign Direct Investment (FDI) floes, Pakistan's economy is expected to shrnik further, flowing Afghanistan's current situation.

According to Dawn (Pakistan's official news pepar), the consistent decline in flows into Pakistan in recent years should worry the country's economic managers.

The net flows fell by just under 39% year-on-year in July in continuation of the trend witnessed last fiscal when,
Long-term, non-debt-creating investments plummeted by 29% to 1.85 billion dollars from the previous year, the Dawn reported.

      Is this right?

Well obviously the situation is that bad, for years now the constant struggle to combat Taliban by the old government has exhausted all their resources even though with the support of the US, and with everything collapsing and the non existence of a government and Taliban taking over which is a terrorist group and no country will accept them as representation of the Afghanis , the economy is the least of their problems and it would likely keep going down hill.

[Vishnu.Reang]

Why would Pakistan’s economy suffer? You’re talking as if Afghanistan and the Taliban are interdependent. But the fact is, it’s the Taliban that is dependent on Pakistan's support, not vice versa.

The only reason why Pakistan’s economy could suffer problems is if because of providing support for the Taliban other countries might impose sanctions.

That will never happen. Pakistan has always supported the Taliban (even when the NATO forces were fighting them in Afghanistan), and they never faced any sanctions for that. However this was one of the reasons why the FATF (Financial Action Task Force) included them in the "grey list". In it's statement FATF claimed that Pakistan continues to support terror organizations such as Taliban, Al Qaeda, Jaish-e Mohammad and Lashkar-e Toiba. Pakistan responded by claiming that the FATF imposed sanctions as a result of pressure tactics from India.