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Terror war will now cost Pakistan $8bn

* Ministry of Finance estimates $34.5 billion losses to Pakistan since 2001

By Sajid Chaudhry

ISLAMABAD: The direct and indirect cost of the war on terror borne by Pakistan is likely to increase to $8 billion per annum in the next couple of years from the current $6 billion, an official source told Daily Times on Thursday.

According to the official, estimates compiled by the Ministry of Finance indicate that during the eight years since 2001, direct and indirect losses to Pakistan’s economy due to the war on terror have been estimated at $34.5 billion. According to the official, the loss of lives and economic cost imposed by the war is now rising to an unbearable level and a very negligible portion of these costs is defrayed by the government’s development partners.

Since 2001, losses of $5 billion have been estimated in foreign direct investment, more than $5 billion in exports and $5.5 billion in privatisation, the official said.

Impact: There has also been deterioration in law and order. Travel advisories have been issued against Pakistan by the United States and other major allies in the war on terror, which has resulted in a reduction in the number of intending investors, foreign buyers interested in taking part in the privatisation of major national assets. The official said this had an impact on the privatisation programme, exports, and resulted in a decrease in the foreign direct investment and revenue collection due to the economic slowdown.

The official said expenditures related to security have multiplied in recent years. Physical infrastructure like bridges, roads, girls’ schools and official buildings has been destroyed, resulting in increased cost of maintenance or reconstruction.

Hundreds of thousands of people have been left with no option but to migrate from areas where security operations are being conducted, he said. The government is bearing the costs of facilitating the migrating families.

The official said Pakistan’s tourism destinations like Swat, Gilgit and Naran were no longer attractive for local or foreign tourists. The decline in tourism has resulted in loss of revenue as well as employment.

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