Economic trends in Afghanistan

The World Bank released a re­port on August 31, 2023, indi­cating positive economic trends in Afghanistan. The local currency has strengthened significantly, with a 29.3% increase against the Paki­stani rupee, 7.3% against the US dollar, 4.9% against the euro, and 6% against the Chinese yuan. Infla­tion has decreased by 9%, largely attributed to exchange rate stabili­ty. Economists suggest this is due to increased reliance on local goods, causing a weaker US dollar.

In contrast, Pakistan faces infla­tion driven by a global recession, political instability, and adminis­trative issues, leading to increased dollar smuggling and an energy crisis. This situation poses sig­nificant challenges for Pakistan’s leadership and planning bodies, hindering its regional develop­ment efforts.

Caretaker Prime Minister An­war-ul-Haq Kakar has pledged to combat trafficking as a major is­sue, emphasising its importance. Additionally, bribery and cor­ruption have severely impacted the economy, making it difficult to address these problems with­out decisive action.



ePaper - Nawaiwaqt