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Afghanistan (1978-2012) An Economic advantage or curse for Pakistans Economy

Presented By
Gulzaib Akram

In September, 1947, Afghanistan became the only nation in the world to oppose Pakistans entry into the United Nations citing the Pashtunistan debate. This opposition did much to jaundice relations between the two states early in Pakistans life. The Afghanistan Pakistan Transit Trade Agreement (APTTA) was signed in 1965 with the objective of granting and guarantee to both parties the freedom of transit to and from their territories.

Sardar Daud made friendly gestures to Pakistan in the late 1970s, but his overtures were cut short by a Communist coup in 1978.

. In 1973, Pakistan, grappling with territorial insecurities, resorted to extending support to Islamists dissidents that opposed Afghanistans Republican government of Sardar Daud.

Afghanistan (1978-2012) An Economic advantage or curse for Pakistans Economy

General Muhammad Zia-ul-heq played a major role in the Soviet attack in neighboring Communist Afghanistan. Aided by the United States and Saudi Arabia, Zia fully endorsed the Afghan mujahedeen against the Soviet occupation throughout the 1980s. This culminated in the USSR's defeat and withdrawal in 1989. In this decade Pakistan earn maximum profit because they are exporting Americans weapon and food to Afghanistan at that time Pakistan economy Growing day by day.

Domestic investment

13 May 2007 - Afghan ground soldiers attacked Pakistani military outposts. April 28, 2011 - Border firing broke out in South Waziristan. At least 12 Afghan National Army troops and one soldier from the Pakistan Frontier Corps were killed in the clash.

June 2011

10 October 2011

Major Items of Export From Pakistan to Afghanistan (In Millions)

Items Petrol & ptr Products Plastic & Articles Wheat Floor Animals vegetables 03-04 126.617 04-05 311.333 05-06 422.88 06-07 313.92 07-08 477.14

92.17 91.151 58.652

78.932 97.282 106.061

112.28 138.38 150.88

79.59 98.09 106.95

120.97 149.09 162.55

Iron& Steel products






Major Item of Import From Pakistan to Afghanistan (In Millions)

Items Iron& Steel& its Articles ED. Fruits, Nuts etc Edible Vegetables Wood & its Articles Leather & Leather manufacture 03-04 5.976 04-05 20.024 05-06 12.051 06-07 19.06 07-08 28.62






6.238 5.495 0.770

2.829 1.955 0.908

7.182 3.04 1.511

11.430 4.57 2.28

17.57 9.42 4.71

( countries/afghanistan. pdf)

Opium, fruits and nuts, hand woven carpets, wool, cotton, precious and semi-precious gems.

Capital goods, food and petroleum products, and most consumer goods. (

Some of the main items smuggled from Afghanistan into Pakistan are drugs such as opium, hashish, and heroin, as well as lumber, precious stones, copper, automobiles and electronics.

Impact on Pakistans Industry

It is a common phenomenon that whenever a war erupts on a large scale in any country, its fallout is felt in its immediate neighboring countries as well. Weaponization of Pakistani society started when US sent huge supply of AK47 rifles and other arms/ammunitions for Afghan Mujahedeen. Though solid figures are not available, at least 53,000 Afghan workers using Pakistani passports are reported to have been hired in the U.A.E..

Impact on Economic growth, inflation, local, foreign investment


2002 Pakistan 2.5 2007 7.7 2003 4.4 2008 16.2 2004 7.7 2009 19.9 2005 7.0 2010 12.0 2006 10.5 2011 18.9


Foreign Investment(In Millions)

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Suggestion for future economic relationship from Pakistans perspective Infrastructure Development of afghan areas. Rebuild the economy of Afghan. Playing it part in developing the peace.

Interior policy War on terror Border safe Always consider that your Media is with you.