Afghanistan under Taliban: Economic implications for Pakistan | Samaa Money

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After Taliban’s takeover of Afghanistan, Kabul is set for a new political regime, a major development that the global media is closely following. The new government and its policies will be crucial for regional peace and stability. The degree of leniency the Taliban have promised in their latest stint in power also needs to be seen. But it may also have serious economic implications for Pakistan, especially if a civil war breaks out in Afghanistan.

The Afghan currency has already depreciated by 15%, making goods expensive for the country where majority of the population already lives below the poverty line. Afghanistan’s economy was largely dependent on foreign aid, which is likely to discontinue after the departure of the American troops and their allies. If not stabilised, the Afghan economy may contract and eventually collapse, which will cause a mass exodus of Afghan refugees. If Pakistan, which is fighting its own economic challenges, takes in these refugees, it could have serious economic implications.
What are some of these economic challenges and how Pakistan could deal with them, Dr Aqdas Afzal, Program Director and Assistant Professor of Economics at Habib University, explains in this video.

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