Economic terrorism has greatly impacted Pakistan's economy and security situation. Since 9/11, Pakistan has suffered massive losses of over $2 trillion due to the war on terror. Terrorism has reduced GDP growth, increased inflation, and caused thousands of deaths. Pakistan now relies heavily on foreign aid due to its weakened economic position. To address this, Pakistan must eliminate terrorism threats, improve education and infrastructure, increase tax revenue, and build trust with allies.

1. Economic Terrorism &
Its Impact on Pakistan
Presented By
Asad Raja
Hammad Raja
Jawad Hassan
Nayab Ali Raza
Syed Sunain Haider
Syed Muhammad Raza

2. History Of IMF
• The International Monetary
Fund (IMF) is an international
organization that was created
on July 22, 1944 at the Bretton
Woods Conference and came
into existence on December
27, 1945 when 29 countries
signed the Articles of
Agreement.

3. Post 9/11 US Funding In Pakistan
• In 2001 Pakistan was emerging from a tough
stabilization program with the IMF which in the
process of reducing macroeconomic imbalances
had, more or less, 'suffocated' the process of
growth.
• Per capita income was stagnant and there been a
substantial increase in unemployment and
poverty.
• Foreign exchange resources were scarce and at
the beginning of FY 2001-02, foreign reserves
stood at $ 3,231 million, enough only to finance
three months of imports of good and services.
• Participation in the war effort led to a substantial
increase in the inflow of concessional assistance,
especially in the form of grants from the USA.
• The economy went back, after a long time, on to
the path of rapid growth from 2003-04 onwards,
averaging a GDP growth rate almost of 7 percent.

4. Contribution of IMF
• The financing from the IMF will help to ease the path of adjustment and
will provide a strong signal of support to the international community.
• Of the $7.6 billion loan, $3.1 billion will be made available by the IMF
immediately to strengthen the reserve position. And the regular
monitoring of the economy by the IMF will show how the macroeconomic
objectives set by the Government are being met and whether they need
to be adjusted in the light of changing circumstances.
• From the early 2000s to mid-2007, Pakistan's macroeconomic
performance was robust. During the period 2000/01-2004/05, when
Pakistan successfully implemented two IMF-supported programs, real GDP
growth averaged 5 percent a year with relative price stability. The
improved macroeconomic performance enabled the country to reenter
international capital markets in the mid-2000s.
• The macroeconomic situation, however, deteriorated significantly in
2007/08 and the first four months of 2008/09 on account of domestic and
external factors. Adverse security developments, large exogenous price
shocks (oil and food), and the recent global financial turmoil buffeted the
economy.

5. What is Economic Terrorism?
• It is carried out to undermine a country to
mount defense or even exist.
• Effects economic terrorism are massive and long
lasting.
• The 9/11 incident is one of the biggest act of
economic terrorism.
• The act by any group or state for the sole and
illegal purpose of creating economic chaos and
collapse as a means of destroying the attendant
society.
• Is the most lethal weapon for any anti-social
element.

6. Why Such Terrorism is Preferred by
Terrorist?
• To give massive damage to a country
in a single attack.
• To break the military defense system.
• To spread fear among average
citizen.
• To cripple the economy of a country.

7. Economic Terrorism in Pakistan
• Since 9/11, many countries have
been subjected to economic
terrorism.
• The incident of 9/11 greatly affected
Pakistan’s defense and economic
condition.
• Frequent suicide bombing is the
main cause of spreading of
economic terrorism in Pakistan.

8. Effects of Economic Terrorism in
Pakistan
• Economic terrorism is costing Pakistan both
economical and human lives loss.
• In 2009, Pakistan’s GDP rate remained 3%.
• The inflation in Pakistan is high i.e. 18.85%.
• Thousands of people have died due to suicide
bombing.

9. Effects of Economic Terrorism in Pakistan
• Pakistan is spending a lot of money in counter-
terrorist activities.
• On the name of War on Terror, Pakistan
suffered loss of 2080 billion dollars.
• Pakistan cannot maintain its economy by itself
and is now depending on foreign aids.
9

10. Challenges faced
• Lack of leadership and weak
political parties.
• Unawareness in citizens.
• Lack of trust in Anti-terrorist allies
of Pakistan.
• Weak economic backbone
• Inefficient security.

11. Conclusion
• Economic terrorism should not be taken lightly.
• Economic terrorism is a very lethal weapon that
can cripple a country.
• It is carried out by anti-social elements due to
political, social or religious reasons.
• Pakistan is facing worst terrorism attacks.
• Such attacks are responsible for the loss of
human lives and economic decline in our country.
• Increased tax on industries and domestic use of
Electricity and Gas.

12. Recommendations
• Government of Pakistan should focus
on should focus on eliminating the
potential threat of economic
terrorism.
• Build awareness among the people.
• Import better technology to tackle
terrorists.
• Build trust greater trust among the
allies.

13. Recommendations
• Pakistan should bring its 97 billion
dollars from Swiss Bank
• Pakistan should concentrate on
development especially on service
sector
• We should spend lesser budgets
on defense and resolve Kashmir
Issue so that there are more funds
• On Macro level we should spend
more budgets on education.

14. Recommendations
• Every Pakistani should pay tax.
• There should be less
corruption and red tapism.
• Avoid Brain Drain.
• Build awareness among the
people.

15. References
• Google Scholar
• Wikipedia
• IMF
• World Bank
• SBP
• IMF Reports
• Nation Newspaper
• Article Economic Cost by Dr. Hafiz A. Pasha
• Undercover Economist