ISLAMABAD: During the last 13 years, the direct and indirect cost incurred by Pakistan on the war on terror and the losses due to terrorist attacks amounted to $102.51 billion, which is equivalent to Rs 8,264.4 billion.
This includes a loss of $24.86 billion in over two years, a government document revealed on Monday. The Economic Survey 2013-14 reveals that Pakistan suffered a mega economic loss of $28459.89 million from January 2011 to March 2013. The figures jointly compiled by the ministries of Finance, Foreign Affairs and Interior, and incorporated in the survey, suggest that of the $102.51 billion or Rs 8264.40 million loss, $23.77 billion loss was reported in 2010-11, $13.56 billion in 2009-10, $11.98 billion in 2011-12, $9.97 billion in 2012-13, Rs 701.26 million in the first three months of 2013, Rs 720.60 billion in 2008-09, and $27.36 billion from January 2001 to December 2007.
According to the summary of losses due to terrorist attacks detailed in the annexure-III of the Economic Survey, Pakistan’s exports, from January 2011 to March 2013, suffered a loss of $2,290.13 million. Foreign investment reduced by $8,067 million. Damages to physical infrastructure resulted in $2,470 million loss. Tax collection was reduced by Rs $6,479.94 billion. The economic loss due to non-privatisation of the public-owned loss making entities was $4,996.46.
Loss in terms of other expenditures amounted in $2,477.53 million. “The cost of uncertainty” following unstable economic environment was estimated to have incurred a loss of $204.78 million, while expenditure overrun was estimated at $644.52 million. As much as $59.21million went in terms of compensation to the victims of the “war on terror” and industrial output declined by $769.79 million from January 2011 to March 2013.
“The conflict and instability in Afghanistan in the aftermath of 9/11 attacks and their regional implications had very negative repercussions for the years following the US invasion of Afghanistan not only saw a huge influx of Afghan refugees across the border into Pakistan but also witnessed a sudden spike in the frequency and scale of terrorist attacks in Pakistan. The cumulative impact of these developments adversely impacted the overall growth rate in all major sectors of the economy.
Pakistan continues to pay a heavy price both in the economic and security terms due to this situation and a substantial portion of precious national resources both men and material, have been diverted to address the emerging security challenges for the last several years. The rise of violent extremism and increase in terrorism in Pakistan due to instability in Afghanistan not only caused serious damage to Pakistan’s economy but has also been responsible for wide-spread human suffering due to indiscriminate attacks against the civilian population,” states the Economic Survey’s annexure III headlined “Impact of War in Afghanistan and Ensuing Terrorism on Pakistan’s Economy.”
“This situation disrupted Pakistan’s normal economic and trading activities which not only resulted in higher costs of business but also created disruptions in the production cycles, resulting in significant delays in meeting the export orders around the globe. As a result, Pakistani products have gradually lost their market share to their competitors. Consequently, economic growth slowed down, demand for imports reduced with declined tax collection and inflows of foreign investment. Investment outflow and negative trends of out sourcing of capital in Pakistan has further added to the woes of dwindling performance of the export oriented industry,” it says.
Pakistan, according to the Survey, needs enormous resources to enhance productive capacity of the economy by repairing damaged infrastructure and to create a favorable investment climate. The security situation will be the key determinant of future flow of the investment. “Pakistan’s economy needs an early end to the conflict in Afghanistan as well as its negative impact over regions bordering Afghanistan in the form of violent extremism and terrorism for revival of the economy and to keep stability in the system.”
RAWALPINDI – Australian High Commissioner to Pakistan Margaret Adamson on Wednesday called on ...