Impact Of Terrorism On Economy Of PakistanAkhlaq AltafBC11-672
Definition Of Terrorism Terrorism is destruction of people or property by peoplenot acting on behalf of an established government for the purpose of redressing a real or imaginary injustice attributed to an established government and aimed directly or indirectly at an established government.
Introduction To Economy Economy refers to any arrangement where production, distribution, excha nge, and consumption of goods and services take place.
Factors Responsible for Growing TerrorismIssues like poverty,unemployment, lack of healthrelated facilities, illiteracy and lackof justice are considered to besome of the major causes ofmilitancy in Pakistan andelsewhere.
Effects Of Terrorism On Economy According to the Pak-US Business Council Report (2009), our economy has so far suffered directly or indirectly a huge loss of $35 billion (official figure is just the double of it. i.e. $70 billion). Due to widespread unrest and political uncertainty in Afghanistan, large quantities of our food items/commodities are smuggled to Afghanistan, which ultimately leads to acute food grain scarcity within our country. According to Pakistan’s Finance Ministry, Pakistan suffered directly or indirectly loss of Rs.2080 billion in the war against terror from 2004-05 to 2008-09 which badly affected the country’s economic development.
Economic CostHigher expenditures on defence and police.Losses of human life.High inflation.Dislocation of economic activities.Damages to property.Slowdown overall economy.Decline in investments.
Cost of War On Terror During the last 10 years the direct and indirect cost of war on terror incurred by Pakistan amounted to $ 67.93 billion or Rs.5037 billion. The direct and indirect costs to the economy is most likely to rise further.
Foreign InvestmentsIn 2009,Foreign Direct Investment (FDI) could not improveand fell steeply by 52 per cent. Industrial units got closed down, workers laid off, capitaltransferred and entrepreneurs threatened for life.
Pakistan Cricket BoardPCB suffered a loss of 51.22million dollarsafter attack on Srilankan cricket team .
Pakistan Tourism IndustryPakistan tourism industry suffered a loss of44 million dollars.
How To Stop TerrorismIf the feeling of injustice is unjustified itcan be removed.By changing the policies Againstmilitants.Attack terrorists and their capacity tooperate.