Welfare Impacts of Afghan Trade on the Pakistani Provinces of Balochistan and Khyber Pakhtunkhwa

Amidst all the concerns of uncertainty over the future of Afghanistan, recent developments have given hope to the world, specifically south and central Asia. A coalition government has now been established following the deadlock that came after the May 2014 elections. President Ashraf Ghani and Chief Executive Officer Abdullah have already signed a Bilateral Security Agreement (BSA) between Kabul and Washington, according to which 9800 troops will remain in Afghanistan beyond 2015. Furthermore, the government of Afghanistan seeks the support of the neighbouring countries to keep peace in the region. Despite all these concrete steps, there has been an increased number of terror attacks and drone operations which has put a big question mark on the stability of the country. How Afghanistan tackles these rising problems will be crucial in defining its future, the trickle-down effects of which will determine the stability of the Afghan-Pakistan region. Concerns about what the future holds for this region with a long history of violence and insurgency are currently being voiced at many levels of society, including on talk shows, at government meetings, within NGOs, and at business forums. Unlike most of the studies done on the Afghan-Pakistan region that focus on the security of the region, this article focuses on the welfare and economic impacts of post-2014 Afghanistan on the neighbouring Pakistani provinces of Balochistan and Khyber Pakhtunkhwa, at the household level