ISLAMABAD: Pakistan’s economic losses due to US war in Afghanistan and the resultant terrorism, though substantial, have seen a steady decline over the past four years with a healthy 62 per cent drop during FY18.
“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,” said Economic Survey 2017-18, attributing it to comprehensive counter-terrorism operations and measures under the framework of National Action Plan as well as the sacrifices of the security forces.
The latest survey, which has recorded the losses to the national economy under the chapter ‘Impact of War in Afghanistan and Ensuing Terrorism on Pakistan’s Economy’, showed them 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.
In the first eight months (July-February) of 2017-18, these losses amounted to $2.07bn, nearly 62pc down from the full year expenses of $5.47bn in 2016-17. Economic losses due to deterioration in security conditions dipped by 30pc to stand at $6.49bn in 2015-16 from $9.24bn in 2014-15. The cumulative losses to the economy on account of terrorism in the country since it joined the global ‘war on terror’ in the aftermath of 9/11 have been estimated by the government at $126.79bn.
The survey noted that 2017-18 was the third consecutive year where Pakistan witnessed fewer terrorist attacks and deaths. Moreover, the country was ranked at 5th out of 163 countries in global terrorism index, from its 4th position in 2007.
It said while Pakistan was successfully fighting terrorists on its soil, it also expected the United States, Nato and Afghan forces to do the same in Afghanistan. On the other hand, Pakistan has continued to be the target of state-sponsored terrorism from its immediate neighbours, the survey added.
The publication pointed out that these losses were incurred in the shape of lost exports, compensation to victims of terrorist attacks, rehabilitation of the people displaced because of terrorism, destruction of economic and social infrastructure, decline in foreign direct investment, reduction in industrial output, lower tax collection and cost of uncertainty.
Published in Dawn, April 27th, 2018
