Pakistan: The trade between Kabul and Islamabad has been affected adversely due to the current financial crisis in Pakistan. The import and exports between both nations previously touched USD 3 billion mark, but dropped drastically recently, said the Afghanistan Chamber of Commerce and Investment (ACCI).
According to the reports through Afghanistan TOLO News, a member of ACCI named Khanjan Alokozai quoted, “The trade conditions in both regions are worsening day by day. The imports have been affected by the decreasing value of Pakistani rupees due to the sinking of Pakistan’s economy.”
As per economists and analysts, the continuously sinking economy of Pakistan is not only putting Afghanistan refugees at risk who are currently living in Pakistan but also impacting the economic condition of the people living in Afghanistan in a worse manner, said reports.
On his part, Zalmay Azimi, a member of the Chamber of Commerce and Investment, stated that the financial crisis in Pakistan has also affected the trade rate between Pakistan and Afghanistan substantially. With tripled prices, Pakistan is facing high inflation in basic commodities such as gas and oil.
Due to Pakistan’s financial crisis, Afghanistan is also suffering from a similar situation, being a close neighbour and ally of the nation. “As Pakistan and Afghanistan share close trade partnership relations, both the nations are suffering from the same challenges as people are not able to buy basic life-saving goods,” said Abdul Naseer Rishtia, an economist.
Pakistani rupees have also declined in their value in the forex exchange due to the ongoing economical crisis. The Consumer Price Index (CPI) skyrocketed to 31.6 per cent in February, which measured the inflation condition in the nation on a monthly basis, as per the Pakistan Bureau of Statistics.
The reports also confirmed that the prices in Pakistan touched the sky last month at a record pace compared to the previous times. The data reflects that inflation is driving to the peak with rising prices in food, beverages and transport expenditures and making it fearful that the families will have to choose between sacrifices and choices, added reports.
Such a high rate is recorded as the highest since last year, according to Arif Habib Ltd, a research firm’s analysis. Additionally, Dawn reported that after being stable at 20 pc for eight straight months from June to January, inflation crossed the mark of 30 pc last month.
Several sectors, such as transport, non-alcoholic beverages, food, and alcoholic beverages, have seen around halfway jump towards inflation.
Moreover, Pak Government is undertaking belt-tightening, aims to increase revenues through taxes, and has made the rupee to depreciate as it conficts out a deal with the International Monetary Fund to secure more than USD 1 billion in funding, reported Dawn. (MILAP NEWS NETWORK)
