The Economic Future of Afghanistan and Pakistan

Muhammad Kashif Shareef, Rawalpindi

Afghanistan is a region with indelible imprints of history and it has been the center of many powerful families and their kingdoms for centuries. It has also been a breeding ground for foreign interference. At the same time, it has been a pioneer of liberation movements in the region and a battleground for many world powers. Today it is again undergoing a change that is the result of an everlasting animosity between the powers of the region. As a result of this conflict, the existing world powers now know the region better than ever. In fact, the major cause of this political and economic tension is the mineral resources which according to the current estimation are worth one trillion dollars. These mineral resources include materials such as Rare Earth Metals and Lithium. These mineral resources are the greatest wealth of the future. They play a vital role in everyday life from mobile phones to medical diagnostic equipment, aerospace industry to space exploration.

In the past seventy years, Pakistan and Afghanistan have been used against each other a lot but it is also a fact that everyone has dreamed of a confederation of Pakistan and Afghanistan whether it is Sikandar Mirza or Sardar Dawood, Zia-ul-Haq or Hamid Karzai. The American rulers were also ready to fulfill these dreams. Consequently, the symbol of Af-Pak was frequently used in the Obama administration to control Pakistan and Afghanistan under a joint strategy. It is not possible to separate these two countries from each other. That is why the Durand Line was not accepted as the absolute borderline between the two countries. As a result, the construction of the fence backed by the Pakistani government has been resisted on both sides of the border. An average of 50,000 people and 400 trucks cross the 2,640-kilometer border daily from about six different locations which has increased by three times after the Taliban took control over Afghanistan.

The Afghan transit trade facility continues despite of all the hatred and nastiness and it is 55% of total Afghan imports. While Pakistan exports about one billion dollars on annual basis. But a fact is that the actual estimation of trade between the two countries is difficult to ascertain because billions of dollars from Pakistan shown in the paperwork for imports and exports is just to give legal protection to ill-gotten money.

If we keep the political situation of Pakistan and Afghanistan in parallel, it is not difficult to understand that the Pakistani authorities interfere in the internal affairs of Afghanistan as if it is a province of Pakistan. The Pakistani authorities cannot ignore the political situation in Afghanistan. Our leadership has played a very important role in the formation of Taliban. Apparently, this is a positive change for Pakistan. A recent statement from Taliban to bring all local forces together and a reduction in taxes on everyday imported goods from Pakistan is a sign of a better future. The economic future of both countries can be bright if Pakistan and local regional powers succeed in bringing this change in their favor.

Translated into English by:

Taimoor Jillani, Abu Dhabi