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?
I am not sure about Pakistan, I think it is certainly going to be impacted, but Afghanistan has certainly thrown away one of the best chances of modernising the country that it ever had. Their economy will now have to do without the huge money pumps from the US. My take is that Pakistan will suffer the side effects as well.