With Pakistan expected to face a loss of around $5.55 billion during the outgoing financial year, the Ministry of Finance has estimated that the cumulative loss to the national economy has reached $118.32bn since 9/11 due to the impact of war in Afghanistan.
“Pakistan continues to be a serious victim of terrorism, including foreign-sponsored terrorism from our immediate neighbourhood,” says the Economic Survey 2015-16 in its dollar estimates of the losses suffered by the economy due to the fighting.
The survey says the increase in violent extremism and terrorism in Pakistan was a fallout of instability in Afghanistan. The situation not only caused serious damage to the economy but has also been responsible for widespread human suffering due to indiscriminate attacks against the civilian population, it added.
“During the last 14 years, the direct and indirect cost incurred by Pakistan due to incidents of terrorism amounted to $118.31bn equivalent to Rs9.86 trillion,” the survey said.
However, the expected loss of around $5.55bn for the outgoing fiscal year is significantly less, compared to $9.24bn in the fiscal year 2014-15. Both direct and indirect losses to the economy resulting from terrorism are on the decline.
Analysts say that higher expenditures against the fight against terror were expected after the APS attack in December 2014. The government has said that peace and stability in Afghanistan and the region are vital for the complete revival of Pakistan’s economy and to keep stability in the system.
reporting by by Kalbe Ali, for Dawn Newspaper, originally appearing at http://www.dawn.com/news/1262431/budget-2016-17-war-costs-receding.