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Impact of Afghan War on Pakistan

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Submitted By mehran000008
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Impact of afghan war on Pakistan economy
“Although history has been very unkind to Pakistan but its geo-strategic position has been a great asset to garner benefits from world great powers” (Stephen p. Kohen)
• Introduction
The conflict and instability in Afghanistan is the aftermath of 9/11 attacks and their regional implications had very negative repercussions, for the years following the US invasion of Afghanistan not only saw a huge influx of Afghan refugees across the border into Pakistan but also witnessed a sudden spike in the frequency and scale of terrorist attacks in Pakistan. The cumulative impact of these developments adversely impacted the overall growth rate in all major sectors of the economy. Pakistan continues to pay a heavy price both in the economic and security terms due to this situation and a substantial portion of precious national resources both men and material, have been diverted to address the emerging security challenges for the last several years. The rise of violent extremism and increase in terrorism in Pakistan due to instability in Afghanistan not only caused serious damage to Pakistan’s economy but has also been responsible for widespread human suffering due to indiscriminate attacks against the civilian population.
This situation disrupted Pakistan’s normal economic and trading activities which not only resulted in higher costs of business but also created disruptions in the production cycles, resulting in significant delays in meeting the export orders around the globe. As a result, Pakistani products have gradually lost their market share to their competitors. Consequently, economic growth could not picked up as planned. Investment outflow and negative trends of out sourcing of capital in Pakistan has further added to the woes of dwindling performance of the export-oriented industry.
Impacts
Afghan war due to its long

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