reconstruction opportunity zones in pakistan

8/9/2019 Reconstruction Opportunity Zones in Pakistan

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ReconstructionOpportunity Zones

Promoting Security By Stimulating

Legitimate Economic Opportunities in

Afghanistan and Pakistan


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Key Economic Indicators*ROZs would counter these conditions by stimulating

vital, legitimate economic activity

Unemployment Afghanistan -- 40%

With 70% ofhouseholds averaging 10 ormore people, this lack of income earningopportunity represents a devastatingmultiplier effect for the significant numberoflarge families

Pakistan -- 20% (national) Unemployment is higher in the ROZ

eligible border areas. For instance,

statistics show unemployment at 28% inNorthwest Frontier Province and 34% inBaluchistan. Household size in rural areasis seven, creating significant pressure onincome providers. Informal sectoremployment is 75% in rural areas.

Per capita GDP $300 - $500 per year in Afghanistan Up to $2400 per year in Pakistan but less than

$1000 in underdeveloped ROZ eligible areas

Poverty

Afghanistan -- 53% Pakistan -- 24% (national)

NWFP -- 44.3% FATA -- 44.5% Baluchistan -- 24.6% Azad Jammu and Kashmir -- 15.6%

GDP by sector Afghanistan

60% - 80% agriculture Includes poppy farming which

some sources estimate is 35%

53% ofGDP 10% industry 10% services

Pakistan 20 % - 42% agriculture 20% industry 38% - 50% services

* Sources include United Nations, World Bank, CIA World Factbook, Afghan and Pakistani governments, USAID etc.

ROZ eligible areas


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Winning Hearts and Minds

Not only do jobs have an

economic multiplier effect

in ROZ areas, but there

would be a public relations

multiplier effect.

Howfar does a

front pageribbon cutting ceremony of

the 1st ROZ factory go?

How beneficial is a photo of

Afghan women employed in

an ROZ factory?

What would be the impact

ofan interview with a

former fighter who laid

down his arms when given

a choice to earn an honestliving in an ROZ factory?

In other words, ROZs do not

have to create 30K, 50K or

100K+ jobs to have a

tremendous benefit.

Headline:

U.S.Supports Jobs and Investment


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Available Infrastructure

Industrial parks already exist and more are being built


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Strategic Importance of

the Frontier Areas The underdeveloped, ungoverned

frontier areas offer safe havens forterrorists to hide, recruit and threatenU.S., Afghan and other coalition forces inAfghanistan.

The Federally AdministeredTribal Areas(FATA) have never been fully governed orintegrated into Pakistan.

ROZs support Pakistans Frontier Strategyand the USG five-year, $750 million FATADevelopment Plan.

Pakistan has captured or killed thousandsofAl-Qaeda operatives and and Talibanassociates since September 11, 2001.ROZ programs while stimulatingeconomic opportunities can extend theauthority ofthe central government intothe frontier region and further deny useofthe frontier areas as safe havens to the

Taliban and Al-Qaeda. Pakistans PrimeMinister has said ROZs would be the leaddevelopment effort into the tribal areas.


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Promoting A More

DiverseAf

ghan Economy

Afghanistan is one ofthe poorest countries in the

world with per capita income $350 per year by some

estimates. After years ofunderinvestment,

Afghanistan lacks the resources needed to build a

modern economy or to attract significant private

investment. ROZs can stimulate job creation for the unemployed

and underemployed, disarmed militia, and returning

refugees. ROZs can also rebuild an economy

devastated by war and diversify revenues away from

illicit and informal economic activities.

ROZs can also support Afghanistans plan to become a

land bridge for regional trade.

reconstruction opportunity zones in pakistan

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