Topic: Pakistan's Economy are going to crisis for Taliban? - page 4. (Read 427 times)

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.

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.

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.

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.

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.

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.

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.

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