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.