Amid decreasing Foreign Direct Investment (FDI) floes, Pakistan's economy is expected to shrnik further, flowing Afghanistan's current situation.
According to Dawn (Pakistan's official news pepar), the consistent decline in flows into Pakistan in recent years should worry the country's economic managers.
The net flows fell by just under 39% year-on-year in July in continuation of the trend witnessed last fiscal when,
Long-term, non-debt-creating investments plummeted by 29% to 1.85 billion dollars from the previous year, the Dawn reported.
Is this right?
There's such much irony in how Pakistan is governed, they spent so much to support the Taliban insurgency because they hate the thought of American "infidels" controlling a neighbor next to them. However the Americans being there was giving them some strategic support, not to mention all the economic benefits that added up over time (a bribe here, aid packages or a over land logistic shipments). Now that the Agfhan taliban do not have foreigners to go after so easily, they will slowly become more extreme and start to target countries around them that do not live up to a perverse version of ideology. Pakistan will eventually reap what it sowed and falling foreign capital inflows will be the start of it.. They'll probably go begging to China though.