KARACHI: Pakistan’s ‘war on terror’ has cost $118 billion so far, a new report by the State Bank has said.

The State Bank of Pakistan (SBP) in its annual report on Thursday showed that extremist violence cost the country $118.3bn in direct and indirect losses from 2002 to 2016.

“Both economic growth and social sector development have been severely hampered by terrorism-related incidents,” the report said.

Pakistan became a pivotal US ally in the battle against extremism after the Sept 11, 2001 attacks spurred the US invasion of Afghanistan.

A Coalition Support Fund was approved by the US to support Pakistan in the war, with an annual release of around $1bn since 2002. By last year Pakistan had received a total of $14bn.

The SBP said that apart from causing immeasurable human suffering, including casualties and mass displacement, the war had helped drive away foreign investment, stall domestic investment, freeze exports, and slow down trade.

Published in Dawn November 19th, 2016

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Comments (53) Closed

UFO

Nov 19, 2016 08:07am

This is the price tag of this harmful 'friendship' with the US. Pakistan should better forgo this and strengthen ties with China and Russia.

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Harmony-1©

Nov 19, 2016 08:45am

These heavy losses for the nation have not affected booming businesses of the ruling class though.

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Mansoor

Nov 19, 2016 08:52am

Not a new news. Every war is an opportunity to make money. Who is minting billions? Someone is certainly benefiting, do we know who? Did we ever try to know who? Can we even point the finger of blame to anyone? And please do not give me the lame excuse that it was the Americans.

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Nov 19, 2016 09:03am

Half the amount has gone into the hands of politicians.

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Counterpoint

Nov 19, 2016 09:08am

War Economy bring riches to the privileged few. Now who got permanent UK citizenship?

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Secularist

Nov 19, 2016 09:13am

@Mansoor I agree. Just try to correlate the volume of deposits in Panama and other such havens with the economic loss. You will find that the country lost and some individuals' accounts bloated.

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LCA tejus

Nov 19, 2016 09:25am

Sorry to say but still not learning from past mistakes. Everyday some banned group leader is freely roaming in Pakistan and shouting to demolish some other country with suicide bombing in the name of freedom of some parts which is claimed to be disputed. Environment of violence creates further violence.

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Rebirth

Nov 19, 2016 09:32am

Gov. Wathra, who was awarded with the title of #1 central banker in the entire world by a Euro country remains unknown and faceless while Yellen, Rajan, and Carney in other nations have become stars. Why?

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AJax

Nov 19, 2016 10:01am

What is the figure based on?

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Rkhan

Nov 19, 2016 10:13am

Flood water brings alluvial soil as well let us expect for better harvest.

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Nov 19, 2016 10:33am

Whom to blame..USA on its part, was compensating USD 1-2 Billions every year. Rest need to be accounted for some bad policies

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AbbasToronto

Nov 19, 2016 10:47am

And how much did the US give Pakistan in the same period? Pittance.

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JEM2HN

Nov 19, 2016 10:49am

Nothing to add....

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Abcd

Nov 19, 2016 11:07am

Musharraf and his dictatorial decisions are still haunting Pakistan

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Just saying

Nov 19, 2016 11:08am

World Tallest Building - Burj Khalifa costs $ 1.5 bn World Biggest Damn - Three Gorges dam costs $ 22.5 bn Cost of Building and Launching Space Satellite costs $ 500 mn Dubailand – $76 bn King Abdullah Economic City – $86 bn The International Space Station – $150 bn London cross rail project - $ 15.67 bn 2nd largest in the world - High speed rail in China - $ 88 bn

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jayyed

Nov 19, 2016 11:43am

The unity it brought to the nation is priceless.

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lafanga

Nov 19, 2016 12:02pm

At least America is benefited by our government. We should proud for that.

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Realize.

Nov 19, 2016 12:06pm

When a nation does not realize that its population is its main asset and not arms or military or nuclear weapons etc. then the nation has to bear the consequences, invest in education, invest in human resources, invest in healthcare, invest in sports, invest in giving skills, and useful work to your millions. My dear countrymen understand it is not the billions that is important it is human lives that are important.

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Khwarezmi

Nov 19, 2016 01:10pm

How much has corruption by the politicians cost Pakistan? Are there any figures?

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ozzy

Nov 19, 2016 01:11pm

@Mansoor why is it a "lame" escyse. Is that because your dear anericans are angels thar are innocent of every war they started. And the mess they created?

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M. Emad

Nov 19, 2016 01:11pm

‘War on terror’ has cost USA $5 Trillion.

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Angry BIRD

Nov 19, 2016 01:45pm

And what about over 50000 Pakistanis who lost their lives. Money can be brought back but not the people who died.

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shobdar

Nov 19, 2016 02:22pm

Does anyone know the cost of not fighting this war?

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Mansoor

Nov 19, 2016 02:37pm

@ozzy No one can create a mess in my home if I do not allow. What America could do to Iranian for 40 years ? Did they disappear from earth? Were they pushed into dark ages? If America has been doling out 2 Billion dollars a year to Pakistan (for over 30 years), is there an Audit where this money was going and who is getting cuts, commissions and kick backs? It is mine, your's and our fault that the country is in such state and "WE" allowed it to be like that.

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The end is near

Nov 19, 2016 02:40pm

The ongoing war against terrorism and extremism cannot bring enduring peace and stability unless the menace of corruption is not uprooted. General Raheel must help and take a solid step in eliminating the corruption and injustice from Pakistan first. Because spending billions on war against terror is just waste of money. Still Every month a new bomb blast occurs in Pakistan on regular basis and innocent people die. Please end corruption first to end terrorism. And make the borders stronger before spending billions on war against terror. You can spend the same money on making borders stronger (Like erecting laser security walls on the borders with afghanistan) because strong borders =Secure nation.

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Mansoor

Nov 19, 2016 02:40pm

@UFO Do not blame Americans. You know who our strategic assets are, how the country has been hijacked and how we are paying the ransom ie Rs 118 Billion.

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Aftab Hashmi

Nov 19, 2016 03:24pm

I ask, except lollipops, what have we got so far from allying with the USA? Losses, only. She has always left is in lurch whenever we needed her. As a state, Pakistan has lost her self-respect.

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Syed F. Hussaini

Nov 19, 2016 03:52pm

@ AJax Would it be possible to ask the UN to help Pakistan recover these losses from the US? The war on terror caused these losses or was it the terror attacks which caused these losses or was it a combination of both? Can we say that Pakistan would not have incurred these losses had it avoided the war on terror?

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farad

Nov 19, 2016 03:54pm

Pakistan fighting war against terror for its own good, not for others. If people think this is to help "Others", then they are really wrong. And spending on their own welfare, it is nothing.

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Harmony-1©

Nov 19, 2016 04:21pm

@Mansoor - "What America could do to Iranian for 40 years ?" Iran's economic loss has been worse than the figure in this news due to sanctions. Iran suffered a loss of about $26bn in oil revenue in 2012 from a total of $95bn in 2011 alone. That is just 2 years and just from oil. You can extrapolate oil and other losses over 40 years. http://www.bbc.co.uk/news/world-middle-east-15983302

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AAN

Nov 19, 2016 04:50pm

And what corruption perhaps it cost more than that

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sikandar

Nov 19, 2016 04:57pm

It is time for Pakistan to stop differentiating good terrorists versus bad terrorists. Stop politics and root out terrorism in whatever form they manifest in our soil.

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Sameer zia

Nov 19, 2016 05:11pm

There has to be a detailed foreign policy, not case to case basis. We have to look for economic partners in every corner of the world, with strong economy the problem of terrorism shall vanish.

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Zeeshan

Nov 19, 2016 05:24pm

what a shame, such heavy irreversible damage due to an imposed war that beatified the civil and military elite at the cost of a common Pakistani.

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Dr.Haroon Nasir Khattak

Nov 19, 2016 05:33pm

What did we earn except curses and humiliation ..

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John

Nov 19, 2016 06:13pm

And Corruption around $500 billion

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M.Saeed

Nov 19, 2016 06:14pm

Let us now ask the US administration if they are with us in War on Terror, or want to withdraw. Our next move should be to get rid of the terror-monger US and start our own Zarb against terror on our own.

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ukasha

Nov 19, 2016 06:22pm

Pakistan should honestly try to eradicate corruption and terrorism. It can be done on an emergency plan and once our institutions realize this on a war footing its a very small issue. Learn from the mistakes of America, they used these people and then got them killed later on. America made so many other mistakes also but they have changed their policy from overt actions in the world by bush & covert in the times of Obama. Stay with American block and eventually it will pay off.

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Asif

Nov 19, 2016 06:26pm

So Mr Musharaf, any comments please. Don't forget the human cost, the brain drain, the sociological effects and an endless list. How happy are we, isn't it?

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Mansoor

Nov 19, 2016 06:31pm

@Harmony-1© Iran did not fall on her face. Actually they stood their ground and are standing tall among the so called Muslim world. They ultimately got what they wanted on their terms rather than us where if someone wants to shake our hand we thrust the permanent begging bowl asking for aids and loans.

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Iftikhar Bhutta

Nov 19, 2016 06:37pm

This is cost of taking part in adventurism of Afghan Jehad launched by America , the West and Arab states against USSR . We have secured nothing except militancy sectarianism , heroine and intolerable conducts . We should rethink and realine our national narrative and take strict action against banned groups as advised in National Action Plan .

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M.Saeed

Nov 19, 2016 06:37pm

@M. Emad : And, Hillary !

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Nas

Nov 19, 2016 06:52pm

@LCA tejus - that is the most sensible comment I have read - Pakistan still has some hope while we have realists like you in the country

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Global Peace

Nov 19, 2016 06:54pm

And how much US has paid and how much actually came into systems and how much in pockets ?

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Faisal

Nov 19, 2016 07:37pm

A war against the monsters that we ourselves created. We have no one to blame but ourselves.

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imtiaz ali khan

Nov 19, 2016 07:45pm

@Faisal Some our created problems, some by foreign intelligence, but worry not hate has no religion, they need to be eliminated. Shanti needs to prevail that is the biggest way of life and above any faith.

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Khanm

Nov 19, 2016 07:47pm

If the money is spent to extend the peace n understanding the ideologies may be we don't not have to ever fight the war again..History is full of examples where ruling with an iron fist or solving the issues with violence has promoted nothing but more violence. Folks some one put it so beautifully...To become a true global citizen, one must abandon all notions of 'otherness' and instead embrace 'togetherness'. The world is no longer white, black, yellow and brown. Through love, tribes have been intermixing colors to reveal a new rainbow world. And as more time passes, this racial and cultural blending will make it harder for humans to side with one race, nation or religion over another. Therefore, practical wisdom should be used to abandon any cultural, social, religious, tribal, and national beliefs of alterity altogether. This is the only way mankind will truly evolve. Segregation is a word of the past. Unity is the key to a peaceful future.”

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imtiaz ali khan

Nov 19, 2016 07:53pm

@Khanm Love and hugs to you friend :)

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Vijay

Nov 19, 2016 08:10pm

Why did your leaders get involved in the first place? Didn't your leaders have an agreement with US about sharing the costs?

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Vijay

Nov 19, 2016 08:11pm

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