KARACHI: The fight against terror in Afghanistan continued to bear heavily on Pakistan’s economy, but the economic losses caused by it witnessed a steady decline over the past four years.
Things seemed to be looking up as the losses witnessed a healthy 62 percent drop during the financial year 2017-18.
According to Economic Survey 2017-2018, “After facing protracted violence for more than a decade, Pakistan has achieved progressive and significant improvements in the country’s overall security landscape in recent years.”
The chapter ‘Impact of War in Afghanistan and Ensuing Terrorism on Pakistan’s Economy’; the latest survey has recorded the losses to the national economy to be declining since 2011-12 except for a surge in 2014-15. The survey said the Afghan war-related costs to Pakistani economy peaked at $23.77 billion in 2010-11 and plunged by almost half to $12bn in 2011-12.
The decline in war on terror losses was witnessed due to the operations and measures taken to counter terrorism under the framework of National Action Plan (NAP) as well as the sacrifices of the security forces.
The economic losses due to deterioration in security situation remained $2.07bn in the first eight months of 2017-18, nearly 62pc down from $5.47bn in 2016-17. The losses dipped by 30pc to stand at $6.49bn in 2015-16 from $9.24bn in 2014-15.
Since the country joined the global ‘war on terror’ after the 9/11 attacks the combined losses have been recorded $126.79 billion by the government.
In the fiscal year of 2017-18, the survey noted that this has been the third consecutive year where Pakistan has witnessed a decline in the counts of terror attacks.
Currently, Pakistan stands at rank 5th out of the 163 countries in global terrorism index as opposed to previous 4th in 2017.
According to the survey Pakistan had been successful fighting terrorism to an extent. It is expected that the United States, Nato and Afghan forces would be able to achieve the same in Afghanistan.
The survey added that despite such gallant efforts Pakistan has continued to be the target of state-sponsored terrorism from its immediate neighbours.
The losses occurred due to decline in exports, compensation to victims of terrorist attacks, rehabilitation of the people displaced due to terrorism, destruction of economic and social infrastructure, and decline in foreign direct investment, reduction in industrial output, lower tax collection and cost of uncertainty.
