Pakistan suffered $107b loss due to US led War on Terror

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(London Post – Islamabad)   – The country suffered a total loss of $107 billion or Rs 8702.75 billion during the last 14 years as a result of the war on terrorism after 9/11 with $4.53 billion loss in the outgoing fiscal year, reveals the Pakistan Economic Survey 2014-15 launched by the government here on Thursday.
According to the document of Pakistan Economic Survey 2014-15, this $106.98 billion loss included direct and indirect losses estimated by a joint ministerial group including Ministry of Finance, Ministry of Interior and Ministry of Foreign Affairs.

During the previous fiscal year 2014-15, Pakistan had to face a total loss of $4.53 billion as a result of war on terrorism followed by $ 6.63 billion in 2013-14, $9.97 billion in 2012-13, $11.98 billion in 2011-12, $ 23.77 billion in 2010-11, $13.56 billion in 2009-10, $9.18 billion in 2008-09, $6.94 billion in 2007-08, $4.67 billion in 2006-07, $3.99 billion in 2005-06, $3.41 billion in 2004-05, $2.93 billion in 2003-04, $2.75 billion in 2002-03 and suffered a loss of $2.67 billion in 2001-02.

It has been observed in the Pakistan Economic Survey 2014-15 that Pakistan’s losses in the war on terrorism have increased from 2001-02 to 2010-11 respectively and then a down ward trend was witnessed till from2011-12 to 2014-2015. Till 2010-11, the losses of war on terrorism increased up to 75 percent from 2001-02. Then during 2011-12, these losses decreased up to 49 percent than the previous year, then in 2012-13, these decreased up to 16.8 percent, in 2013-14 up to 33 percent and during the previous year these losses decreased up to 31.7 percent than the previous years.

By going through the summary of losses in each area, it could be witnessed that the country suffered loss of $0.73 billion in exports due this war on terrorism during 2014-15, $0.01 billion in compensation to affectees, $0.50 billion in damage of physical infrastructure, $0.09 billion in foreign investment, $ 0.02 billion in industrial output, $2.00 billion in tax collection, $0.002 billion in cost of uncertainty, $0.62 billion in expenditure overrun and $0.55 billion in other expenditures with a total loss of $4.53 billion during fiscal year 2014-15.

The document says that 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

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 widespread human suffering due to indiscriminate attacks against the civilian population.

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.

The security situation will be the key determinant of future flow of the investment. Pakistan Economic Survey says that after adoption of National Action Plan by the All Parties Conference (APC) and its subsequent implementation, which is overseen by the apex committees of the provinces, there have been improvements in the overall security situation in Pakistan in the recent months. However, peace and stability in Afghanistan and the region are vital for the complete revival of Pakistan’s economy and to keep stability in the system.

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