By NNN-APP,
Islamabad : Pakistan has spent over Rs. 2,082.942 billion (US$25 billion) on War on Terrorism since 2004, a document released by Ministry of Finance said here on Friday.
This included direct cost of Rs.450.222 billion and indirect cost of Rs. 1632.720 billion, said the Draft Poverty Reduction Strategy Paper-II, released here.
The economy suffered direct and indirect losses in terms of exports, foreign investment, privatization, industrial production and tax collection because of the continuing war on terror.
According to the document, the war on terrorism cost Pakistan Rs.259.103 billion in financial year 2004-05, Rs.300.780 billion in FY2005-06, Rs.360.899 billion in FY 2006-07, Rs. 484.367 billion in FY 2007-08 and Rs.677.793 billion in the current financial year.
According to the document, Pakistan’s participation in the anti-terrorism campaign has led to the massive unemployment in the affected regions.
Frequent bombings, worsening law and order situation and displacement of the local population have taken a toll on the socio-economic fabric of the country, it added.
“The government is in the process of devising a strategic policy to overcome the menace of terrorism which have captivated the entire country,” the document added.
The anti-terrorist campaign, which began as a result of the unfortunate 9/11 event in the United States in 2001, over-strained Pakistan’s budget as allocation for law enforcement agencies had to be increased significantly.
This resulted in erosion of resources for the development projects all over Pakistan, particularly FATA and NWFP areas in addition to human sufferings and resettlement costs.
The document said that since the start of anti-terrorism campaign, an overall sense of uncertainty has prevailed in the country which contributed to capital flight, as well as slowed down domestic economic activity, making foreign investors jittery.
“It is apprehended that Foreign Direct Investment, which witnessed a steep rise over the past several years may be adversely affected by the ongoing anti-terrorism campaign in FATA and other areas of NWFP,” it added.
The document said that Pakistan’s participation in the international campaign has led to an excessive increase in the country’s credit risk, which has in turn made borrowing from the market extremely expensive.
It said that Pakistan’s sovereign bonds have under-performed due to increased law and order concerns amongst other reasons including domestic political and economic stability.