Ex-MNA seeks end to deforestation
20.05.12
One such extremely important issue related to post-Isaf Afghanistan is the Afghan economy’s hard landing after 2014 and the unique set of challenges that will that create for Pakistan, given our own economic doldrums. In a recent report, the World Bank (WB) pointed out Afghanistan’s near-total dependence on aid — more than 90% of the $17.1 billion total public spending (includes core budget at $3.3 billion and external budget) is financed from aid. Between now and 2014, 150,000 foreign troops and 30,000 contractors will be leaving Afghanistan. Donor aid flows are already declining and in the absence of a legitimate export base or centrally collected tax flows, there will be a substantial decline in aggregate demand leading to a contraction in the gross domestic product (GDP). Estimates by US Treasury officials put the estimated GDP contraction anywhere between 13% (best case and same as that occurred in the US during the Great Depression) and 41% (worst case). After the Isaf drawdown,
Source: The News International