Since 1980s the Afghan refugees have been settled in different camps across Khyber Pakhtunkhwa and have numerous impacts on the local people of Pakistan. These impacts are social, political and psychological in nature. Although, afghan refugees have both positive and negative impacts on the local communities in terms of business and employment however; their negative impacts on the local economies and business communities are far greater. In this study the overall impacts of Afghan refugees on the local business communities have been investigated. The study has been conducted in district Dir Lower wherein afghan refugees are settled in different camps at Tehsil Adenzai (Chakdara) and Tehsil Balambat (Timergara). This study is quantitative in nature. Primary data was collected through questionnaire from the respondents of the study area. Likert scale has been used in order to find out the impacts of refugees on the local economy/business communities. The relationship between independent and dependent variables was later on identified through X2. This study shows that the refugees have negatively impacted the economic sector of Dir Lower, because they have occupied all type of business. This has decreased the job opportunities for local people and their income has been reduced. The refugees have monopoly in market and the local people get very less remuneration for their sale and services.
Key words: Refugees, economy, impacts on labor, impacts on businesses, inflation, smuggling
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