Because of the arrival of the Taliban in Afghanistan (the organization “Taliban” is recognized in Russia terrorist and prohibited) flows of foreign direct investment in neighboring Pakistan began to decrease. According to The Economist, the prospect of staying without money will lead to the fact that the Pakistani economy will continue to reduce.
According to the estimates of Pakistani State Bank, from 2016 to 2020, foreign direct investment has decreased from $ 41.9 billion to $ 35.6 billion. At the same time, according to analysts forecasts, against the background of an unstable situation in Afghanistan, the trend will continue now.
The growth of the yield of Pakistani bonds soon after the collapse of the Afghan government in Kabul testifies to the loss of the trust of global investors to the economy. Pakistan may also encounter a reduction in its export income, if instability and uncertainty in Afghanistan continue.
Afghanistan has already begun to overlap Pakistan trading paths. Taliban stopped transit trade with India through the territory of Pakistan and closed two trade terminals on the border with it through which the Indian-Afghan import and export was mainly carried out.
Investments in the Afghan economy are three billion dollars, the volume of Indian-Afghan trading amounted to 1.5 billion dollars in 2019-2020. India exported pharmaceutical goods, medical equipment, computers, cement and sugar to Afghanistan. The closure of the trading path through India will be a serious test for Pakistani trade.