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Adapting to Change: Afghanistan’s Economic Outlook Amid Regional Pressures

By Abdul Waheed Waheed Afghanistan’s strategic diversification of trade routes through Central Asia and Iran has reduced its economic reliance on Pakistan, lessening the impact of repeated border closures. This analysis explores how these shifts are strengthening Afghanistan’s resilience, reshaping cross-border trade dynamics, and highlighting the need for both Afghanistan and Pakistan to move from coercion toward cooperative, predictable engagement. A courageous step taken a decade ago to reduce Afghanistan’s dependence on Pakistan and to explore alternative trade corridors is now bearing fruit. Those forward-looking policies, once underestimated, have today resulted in Afghanistan’s calm indifference toward Pakistan’s closure of the Durand Line gates. The bold decisions to diversify trade routes and strengthen regional connectivity, particularly through Central Asia and Iran, have gradually freed Afghanistan from the economic stranglehold once exerted by its southern neighbor. The era when a single day of Durand Line gates closure could trigger panic and inflation across Afghan markets is gone. What we now witness is a quiet but profound shift: the transformation of vulnerability into resilience, born out of strategic foresight and hard-earned lessons from history. It has already been three weeks since the gates along the Durand Line were closed, yet prices inside Afghanistan have remained relatively stable. The closures no longer exert significant economic pressure on the country. This newfound stability reflects Afghanistan’s growing economic resilience and its gradual shift away from over-dependence on Pakistan for trade and transit, while also demonstrating a measured response to Pakistan’s unilateral imposition of restrictions on Afghan trade and movement. However, the closures have taken a toll on Afghan exports, particularly perishable goods such as fresh fruits and vegetables. Thousands of tons of these products, destined for Pakistani markets, have...

Chinese and Pakistani Experts Call for Enhanced Cooperation to Strengthen Strategic Partnership and Regional Stability

Regional stability is fundamental to the future of the Pakistan-China partnership, emphasized the leading Chinese and Pakistani scholars and experts during a high-level roundtable discussion hosted by the Center for Research and Security Studies (CRSS). The dialogue focused on navigating complex geopolitical challenges while strengthening bilateral cooperation through practical initiatives. Dr. Zhang Jiegen, Director of the Pakistan Study Center at Fudan University, set the tone for discussions by highlighting how divisive propaganda undermines the brotherly ties between the two nations. He stressed the critical need for evidence-based dialogue to address evolving regional dynamics and strengthen the strategic partnership. A former Pakistani diplomat identified India's role in Afghanistan as a strategic gambit to contain Pakistani and Chinese influence, arguing that the Kabul-New Delhi alliance has created a palpable sense of encirclement for Pakistan, worsening its security via proxy forces. He urged a fundamental policy reset, replacing outdated narratives with a clear-eyed, transactional approach. The path forward, he suggested, lies in leveraging mutual needs: Afghanistan's quest for sea and market access in exchange for Pakistan's requirement of stability and land corridors to Central Asia. A central theme was the urgent need for Pakistan to address its internal policymaking and security challenges. A senior security expert identified a systemic failure where institutional strategy is replaced by individual discretion, leading to an absence of a coherent national policy. This was echoed by an economic expert who highlighted the over-reliance on government-to-government interactions with international partners, which fails to build broad-based societal support. He stressed that initiatives like the China-Pakistan Economic Corridor (CPEC) will only succeed if the Pakistani public sees tangible benefits, such as job creation and local investment. He noted that...

Pakistan’s Energy Missteps and Crisis of Dependency

By Imtiaz Gul & Engineer Arshad H Abbasi The authors dissect Pakistan’s decade-long descent into energy dependency. Drawing on policy data and comparative analysis, the authors trace how the neglect of public-sector power plants, misplaced investment in imported fuels, and rent-seeking governance transformed a manageable shortfall into a structural crisis. In 2013, Pakistan’s energy crisis reached its darkest point. Cities fell silent under endless load-shedding, factories stood shuttered, and families endured darkness for as long as 18 hours a day. This collapse was not the result of absent infrastructure but of something far more serious: public-sector power plants, once the backbone of national energy, corroded by neglect, starved of maintenance, and left to decay. A nation of two hundred million stood at a crossroads, and the path chosen sealed a decade of hardship. One option was straightforward: rehabilitate the thermal plants inherited under the Pakistan Electric Power Company (PEPCO). Though battered by decades of misuse, their structures remained sound. Feasibility studies laid out a rehabilitation program costing just USD 215–400 million. In return, Pakistan could have restored 1,200 MW, reduced fuel consumption, cut emissions, and bought precious time for structural reforms. Instead, policymakers embraced imported fuels under the 2015 National Power Policy. LNG terminals rose on the coasts, coal plants in Sahiwal and Port Qasim began to burn foreign coal, and independent power producers (IPPs) signed contracts with binding take-or-pay clauses. The consequences were severe. Circular debt spiralled past Rs. 5 trillion. As a result, Pakistan’s tariffs ranked among the highest in South Asia. Ordinary households were forced to spend half their incomes on electricity. Industries shuttered, exports shrank, unemployment deepened, and every ribbon-cutting ceremony became less a promise of light than a symbol of financial strain. Across the border, India...

Three Quarters of 2025 Nearly as Violent as Entire 2024

CRSS Security Report - Q3, 2025 With at least 901 fatalities and 599 injuries - among civilians, security personnel, and outlaws - resulting from 329 incidents of violence, including terror attacks and counter-terror operations, Pakistan witnessed an over 46% surge in overall violence in its security landscape for the third quarter of 2025, according to the Center for Research and Security Studies (CRSS). In just three quarters, 2025 has proven nearly as deadly as all of 2024, with 2414 fatalities recorded compared to the entire tally of 2024 (2546), which, with an entire quarter still remaining, indicates that i) 2025 is on course to surpass last year’s toll, and ii) intensification of militant violence and the expanded scale of counter-terrorism operations. If the current trend continues, 2025 could mark one of the deadliest years in a decade. A year-on-year comparison reinforces this shift. Between January and September 2024 (Q1-Q3), Pakistan recorded 1,527 fatalities. The toll of 2414 fatalities for the same period in 2025 marks a 58% rise in violence. However, the source of fatalities has shifted; in 2024, security operations caused 505 deaths (33% of the total), while terror attacks claimed 1022. In 2025, security operations accounted for 1265 deaths - over half of the total fatalities. This shift underscores how the state’s response has intensified, with security forces inflicting heavier losses on militants. Accounting for over 96% of the country’s violence in this quarter, Khyber Pakhtunkhwa (KP) and Balochistan stood out as the most volatile provinces. KP was the worst-hit region, suffering nearly 71% (638) of the total violence-linked fatalities, and over 67% (221) of the incidents of violence, followed by Balochistan, with over 25% fatalities (230) and incidents (85). The number of fatalities, injuries, and incidents recorded in all other regions remained relatively low. Compared to Q2, 2025, the total fatalities jumped from 616 to 901 in the period...

Nile Waters, Shared Destiny: A Case Against Ethiopia’s Mega-Dams

By Engineer Arshad H Abbasi, International Water & Energy Expert As an independent expert in water and energy issues, with long-standing professional experience on transboundary rivers, I have followed with close attention the recent inauguration of the Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile. At a cost of $5 billion, the GERD is Africa’s largest hydroelectric project and a symbol of Ethiopia’s ambition to electrify its economy and reduce energy poverty. For Ethiopia, it represents not only energy security but also national pride, as the project was built without foreign aid and funded largely by the sacrifices of its own citizens. But for its downstream neighbors, Sudan and especially Egypt, the dam raises profound anxieties about water security and survival. The concerns of Egypt are not difficult to understand. More than 95 percent of Egypt’s water supply comes from the Nile. Few nations in the world are as dependent on a single river as Egypt, which obtains 93 to 97 percent of its freshwater from the Nile. This level of reliance transforms the river from a resource into an existential necessity. Historical use of the Nile has sustained Egypt’s civilization for millennia, providing fertile soil, drinking water, and the irrigation on which agriculture has depended since the age of the pharaohs. Today, the Nile continues to be the backbone of Egypt’s food, water, and energy systems. In international water governance, historical use and dependence are not abstract arguments. They constitute real, legally relevant grounds for priority of use, especially when more than 100 million people live in a nation where the river is virtually the sole water source. The construction and operation of the GERD must also be viewed through the framework of international transboundary water law. The 1997 UN Convention on the Law of Non-Navigational Uses of International Watercourses enshrines two guiding principles: the principle of equitable and reasonable...

How is Afghanistan’s Education System Transforming Under Taliban Rule?

by Islomkhon Gafarov Afghanistan’s education system faces a critical crossroads under Taliban rule. With religious studies prioritized over secular and scientific learning, limited opportunities for girls, and chronic underfunding, the country risks long-term setbacks in innovation and development. Yet, regional partnerships, progressive Afghan institutions, and emerging online education initiatives offer avenues to preserve learning, empower communities, and bridge the gap between tradition and modernity. The Taliban’s assumption of power in August 2021 exerted a profound impact on the socio-cultural and political fabric of Afghanistan. The ensuing politico-spiritual transformations reverberated across the country’s economic sphere and the of its social life. The system of primary, higher, and postgraduate education found itself in a precarious position, shaped by the abrupt shift in political and ideological orientation following two decades of American presence. In effect, instability in the educational sector emerged as a direct consequence of the transition from a Western-oriented model to an Islamic conception of education. This transformation is poised, in the long term, to generate a complex set of socio-political and economic challenges for Afghan society. Current Situation and Challenges The contemporary education system in Afghanistan faces a range of profound structural and institutional deficiencies. The Taliban administration in Afghanistan has placed a clear priority on the religious dimensions of education over secular and scientific disciplines. Consequently, theological subjects occupy a central position in curricula – often as compulsory components – while the development of natural sciences and technical fields remains severely constrained. This imbalance impedes the formation of an innovative environment and hampers progress in strategically significant domains such as information technology. Over the long term, in an era defined by global...

BUILDING BRIDGES: REGIONAL DIALOGUE FOR PEACE AND DEVELOPMENT

Introduction The Center for Research and Security Studies (CRSS), in collaboration with the Organization for Economic Studies and Peace (OESP), Central Asian Progress and Integration Forum (CAPIF) and the Institute for Advanced International Studies (IAIS) at the University of World Economy and Diplomacy, convened an international roundtable titled “Building Bridges: Regional Dialogue for Peace and Development” on July 23–24 in Tashkent. The event brought together prominent academicians, analysts, policymakers, and civil society leaders from Pakistan, Afghanistan, Uzbekistan, and Egypt to explore pathways for regional cooperation, inclusive development, and cultural exchange across Central and South Asia, with Afghanistan’s stability and prosperity at the heart of the dialogue. Against the backdrop of growing quadrilateral engagement among Pakistan, Afghanistan, Uzbekistan, and Egypt, the forum provided a platform for action-oriented discussion on coordinated approaches to shared challenges such as refugee flows, drug trafficking, terrorism, and educational exclusion, while highlighting the critical role of women’s empowerment, trade, and academic cooperation in building a peaceful future. Participants of the roundtable put forward several actionable recommendations that, if implemented, could create significant opportunities for advancing regional prosperity and connectivity. The key suggestions from the dialogue are as follows: DR. QIBLA AYAZ Dr. Qibla Ayaz initiated the discussion by reflecting on the transformative role of education, remarking that universities must be understood as more than academic institutions: they are vital bridges that connect nations, scholars, and cultures. He stressed that education is central not only to personal growth but also to building peaceful societies, and therefore, women’s education must be treated as a fundamental right. He cautioned, however, that scholars often face risks for speaking truth to power, as their views may...

Empowered Jirga, People-to-People Linkages, and Interest-Based Engagement Vital for Pak-Afghan Relations: Barrister Saif

Jirga, comprising representatives from both sides and leveraging people-to-people linkages at the local level, is essential to address contentious issues between Pakistan and Afghanistan. If formal communication channels are stalled or serve as an obstruction, jirga - the people - must undertake responsibility, step forward, and actively seek resolution. The local linkages, empowered with the mandate for conflict resolution mission, have a great potential to overcome challenges encountered between both and on respective sides. The Khyber Pakhtunkhwa government is still trying to take a representative jirga to Kabul. Tribal representatives, as voices of the people and members of civil society, should rise above the contentious positions and actively pursue conflict resolution. These remarks were made by the Advisor to the Chief Minister, Khyber Pakhtunkhwa on Information and Public Relations, Barrister Dr. Muhammad Ali Saif, during the 6th round of Pak-Afghan Tribal Stakeholders Dialogue on Regional Stability and Economic Connectivity, organized by the Center for Research and Security Studies (CRSS), as part of its multitrack diplomacy initiative Beyond Boundaries. Barrister Saif said that Pakistan and Afghanistan need good relations not just as a matter of neighbours but as a matter of fact that war benefits none. He emphasized the urgency of shifting the paradigm of bilateral engagement from one based on power to one based on shared interests: “We need to change our paradigm of engagement with each other; the Pak-Afghan relationship requires an “Interest Paradigm” rather than “Power Paradigm”, since the former aims to exert control through power whereas the latter aims the creation of shared interests and serious stakes for peace and cooperation with each other”. Chief Customs Wing, FBR Islamabad, Mr. Arbab Qaiser said that since the Taliban’s takeover, Pakistan has made serious efforts to strengthen trade and transit relations with Afghanistan. Given that...

IRAN -ISREAL CONFLICT GEOPOLITICAL IMPLICATIONS FOR SOUTH ASIA

Executive Summary The 12-day Israel-Iran war sent shock waves across the globe. It not only enforced some strategic realignments but also further sharpened the existing geopolitical divisions between the two major camps: the US-led G-7 and the NATO alliance, versus the China-Russia-led Eurasian groupings, such as the SCO and, to a certain extent, BRICS. In the joint declaration after the Rio de Janeiro summit (June 6), member states described the recent Israeli and American attacks on Iran as a “violation of international law”. They expressed “grave concern” about the deteriorating security situation in the Middle East – a position contrary to that of the US-led bloc. The conflict, in fact, crystallized and further expanded those fault lines in multiple ways and have an almost direct bearing on South-Southwest Asia involving India, Pakistan, Afghanistan and Iran. Firstly, the war, as well as the continued Israeli aggression against Gazans and Palestinians, not only eroded the moral and democratic credentials of the lead western countries but also exposed Israeli weaknesses like never before; for decades, Israel was used to intermittently mauling and claiming victories against small non-state actors like Hamas and Hezbollah. A sense of superiority and invincibility drove Israel’s high-handed conduct with smaller and handicapped countries such as Syria and Lebanon because of unquestioned support from the US and its closes allies such as UK and Germany. Secondly, apparently steeped in a sense of racial superiority, Israel also considers itself as indispensable to the Western powers, whose direct or indirect support only reinforced the notion that “the UK is an active participant in genocide in Gaza” (in the words of Zara Sultana, a former UK Labour Party MP). Thirdly, the Israel-Iran conflict drew widespread, across-the-board condemnation from within the Islamic countries in general. With over 850 million Muslim population in India, Pakistan, Afghanistan, Bangladesh,...

Uzbekistan: The Landlocked Nation That Defied Geography

By Engineer Arshad H Abbasi Uzbekistan’s transformation shows that disciplined leadership and vision can overcome even the harshest geographical limits. Its rise offers a striking lesson for nations blessed with resources but lacking direction. Uzbekistan is one of only two doubly landlocked countries in the world, cut off not just from the oceans but also from the seas of its neighbors. Geography, at least in my early assumptions, condemned it to stagnation. I remember my first visit to this proud Central Asian land nearly two decades ago. As I looked out over its vast steppes, a persistent thought weighed on me: how could this country ever achieve meaningful development without a seaport? To my mind, ports were the gateways to prosperity, the arteries of trade. Without them, Uzbekistan seemed fated to struggle. But how magnificently Uzbekistan has proved me wrong. This nation has demonstrated a resilience and discipline that has stunned even seasoned observers. It has charted a path of reform and modernisation that many coastal states, blessed with access to the seas, have failed to match. In doing so, Uzbekistan has shown that geography does not dictate destiny—leadership does. This realisation carries a painful irony for me as a Pakistani. My country has every advantage Uzbekistan lacks. We have a 1,046-kilometer coastline, three major seaports—Karachi, Port Qasim, and Gwadar—and nine coastal cities. Pakistan should be a hub of prosperity, commanding global trade routes and ensuring growth for its people. Yet we are slipping deeper into poverty and economic fragility. According to the World Bank, more than 45 percent of Pakistan’s population now lives below the poverty line. Our foreign reserves stand at only 19 billion dollars in mid-2025. By contrast, Uzbekistan, with no seaports at all, has surged ahead. In 2006, its reserves stood at just 4 to 6 billion dollars. Today, they exceed 49 billion. Poverty has fallen sharply, with just 8.9 percent of the...

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TESTIMONIALS

I am also a member of National Assembly’s Standing Committee on Information and Broadcasting. Recently, we held a meeting with the Director General of Radio Pakistan and we told them to initiate such local programs (like Constituency Hour) in regional languages to educate and inform people. Even Indian Radio can be heard in FATA which is being used for propaganda purposes and must be closed. Therefore, we should launch some standard and quality programs like CRSS that will change the taste of the listeners.

Soniya Shams

Shaheed Benazir Bhutto Women University, Peshawar