Terrorism is the principal source of instability in Pakistan. Another major cost after successful military operation was relocation of IDPs from the temporary shelters to their new homes, as their old properties and businesses were completely destroyed by terrorists.
As a result, Pakistani products have gradually lost their market share to their competitors. We have witnessed many Arab and Muslims countries falling prey to this form of terrorism, where state is almost non-functional, and terrorist factions are creating anarchy in the areas controlled by them.
Terrorism is considered as one of the biggest threat to the economy of the country because it is adversely affecting businesses and production units the manufacturing sector has been hard hit by political instability and frequent incidents of terrorism.
Economic effects of terrorism on pakistan, both regional and national stability are necessary if terrorism is to be tackled and if the economic cost of terrorism is to be reduced.
This tourism industry was shut down between due to militancy and the subsequent military operations. These countries are economically crippled, and unable to bring back law and order, and as a result of which several thousand innocent lives are lost every year.
The NWFP Department of Education reports that education for students has been severly affected because of damaged or destroyed schools. Pakistan is from among the bravest and greatest nations of the world. Written by Sheikh Fahad Sincethe world has seen terrorism evolve into a new dimension, in the form of economic terrorism.
Economic terrorism is the biggest threat to any country in the world, and can cripple the mightiest of the empires in the world today. Swat was a training centre for budding and grafting of plants and nursery industry was on the rise.
But, due to the insurgency, the Swat valley has been subjected to continuous attacks. In order to flush out terrorists from their safe havens, Pakistan army started military operations inin areas like Swat Valley and parts of FATA.
The international community should also help Pakistan not only in the form of financial assistance, but also in building and investing in economic zones in these areas. Swat had more than hotels, including restaurants in the valley, and around 40, people were employed with the hotel industry.
More importantly, the people of Malakand have proven their patriotism but there remains the need for political vigilance so that exploitative actors do not use them for spreading terror and destabilizing the country.
Pakistan is one of the nations that were stuck by economic terrorism from till Moreover, it is necessary to take regional countries in confidence. Additionally, terrorism creates uncertainty, reduces confidence and increases risk perceptions; leading to lower rates of investment and lower economic growth Currently Pakistan needs enormous resources to enhance productive capacity of the economy by repairing damaged infrastructure and to create a favorable investment climate.
Pakistan has lost approximately Rs. In the second stage, the government should start infrastructural development and later on industrialization in the troubled regions by utilizing their natural resources.
Economic terrorism results in the internal collapse of a country; it gives rise to confusion, slowdown in economic activity, seizure in investments, street protests and strikes, and a decline in tourism.
These kinds of activities are specifically carried out by foreign countries through non state elements in order to sabotage the economic activities of a country, and make the state dysfunctional. Pakistan has paid a heavy price in the war against terrorism and rendered more sacrifices than any other nation.
There needs to be consensus building on the issue at the national level among the political, religious, bureaucratic and army leadership. Through awareness campaign the government would be able to remove any uncertainty among the people of this region.
That has been due to various factors, including hostilities, artillery shelling, blowing of bridges in bomb blasts, blockade of roads, attacks, and curfews.Shah Faisal Afridi Pakistan is facing the menace of terrorism which is eroding the country’s social structure, economic development and political system.
Sep 11, · However, as the report emphasizes, a number of factors influence the cost of terrorism to a country’s economy – the diverse nature of terrorism, the economic resilience of an economy and security levels all play a role – so the economic impact of terrorism is varied.
To gauge the impact of terrorism on Pakistan’s economic growth Solow economic growth model has been used. Using data on terrorism from Global Terrorism Database, co-integration analysis for the period has been applied. The analysis suggests that terrorism has negatively affected the economic growth in Pakistan.
Impact of Terrorism on Economic Development of Pakistan Research Introduction Terrorism can be defined as the “the premeditated use or threat of use of violence by individuals or sub-national groups to obtain a political or social objective through the intimidation of a large audience, beyond that of the immediate victim” (Sandler and .Download