ISLAMABAD: The government reported on Thursday that because of improved security losses caused by terrorism declined by about 32 per cent during the first three quarters of the outgoing fiscal year (2014-15) as compared to 2013-14.

According to the Economic Survey, the losses caused by terrorism during the first nine months amounted to Rs457.93 billion ($4.53 billion), which were 31.7 per cent less than Rs681.68 billion ($6.63 billion) lost in 2013-14.

The cost incurred last year was comparable with losses suffered in 2008-09, when Rs720.6 billion was lost.

The estimates have been prepared by a joint ministerial group comprising officials of ministries of finance, interior and foreign affairs.

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The financial losses have been calculated on the basis of loss of exports, physical infrastructure, foreign investment, industrial output and tax collection and the amount paid in compensation to victims of terrorism. The cost also includes the amount spent on security arrangements.

“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 report said.

Pakistan has lost Rs8702.75 billion ($106.98 billion) because of terrorism since the start of war on terror in 2001-02. Most of the losses happened after 2007 with some Rs5000 billion lost between 2008 and 2013.

The losses have been declining for the fourth consecutive year.

The decline in losses during the year was attributed to success of counter-terrorism operations being conducted by the Army during the period.

“After adoption of the National Action Plan by the All-Party 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 as a result of concerted actions,” the report said.

But it said peace in Afghanistan was essential for “complete revival of economy and stability”.

The government blames the rise of violent extremism and terrorism to instability in Afghanistan.

Published in Dawn, June 5th, 2015

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