Pakistan will pay the price of Taliban rule through a deficit in the economy, there may be a big fall in FDI

Posted on 20th Aug 2021 by rohit kumar

Even though Pakistan is happy with the coming of Taliban rule in Afghanistan, but it may have to face the consequences. This can hit its economy and there may be a big decline in foreign direct investment. Even now its foreign direct investment is falling continuously. According to the report of Pakistani newspaper Dawn, the way foreign direct investment in Pakistan has declined in the last few years is a matter of concern for economic managers. In July, there has been a decline of 39 percent in foreign direct investment in Pakistan compared to the previous year.

 

There has been a decrease of 29 percent or $1.85 billion in foreign direct investment compared to the previous year. According to the data of the State Bank of Pakistan for the last 4 years, FDI in Pakistan is continuously decreasing. If we look at the figures, Pakistan's FDI stock was $ 41.9 billion in 2016, which fell sharply to $35.6 billion in 2020. The Pakistani newspaper said that now the impact of the crisis arising in Afghanistan can be seen once again. Due to this, there can be a big reduction in foreign direct investment in Pakistan.

 

According to the newspaper, there may be a decrease in Pakistan's export revenue. Such situations may arise due to instability in Afghanistan. Amidst the crisis arising in Afghanistan, Pakistan has decided to set up refugee camps near its border. According to reports, 3 million refugees from Afghanistan are living in Pakistan. Half of these are settled illegally. Pakistan is also going through a crisis of trade deficit. Pakistan's trade deficit stood at $3.058 billion in July.

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