Terrorism has negatively impacted Pakistan's economy in several ways. According to reports, Pakistan has suffered direct and indirect losses of $35-$70 billion due to terrorism. Food commodities are also smuggled to Afghanistan, leading to food scarcity in Pakistan. From 2004-2009, Pakistan suffered Rs. 2080 billion in losses from the war on terrorism, hindering economic development. The direct and indirect costs of the war on terror over 10 years have amounted to $67.93 billion. Terrorism has also led to higher military/police expenditures, losses of life, inflation, slowed economic activity, damaged property, declining investment, and falling foreign direct investment. Specific industries like the Pakistan Cricket Board and tourism have also experienced

1. Impact Of Terrorism On
Economy Of Pakistan
Akhlaq Altaf
BC11-672

2. Definition Of Terrorism
Terrorism is destruction of people or property by people
not acting on behalf of an established government for the
purpose of redressing a real or imaginary injustice
attributed to an established government and aimed
directly or indirectly at an established government.

3. Introduction To Economy
Economy refers to any
arrangement where
production, distribution, excha
nge, and consumption of goods
and services take place.

4. Factors Responsible for
Growing Terrorism
Issues like poverty,
unemployment, lack of health
related facilities, illiteracy and lack
of justice are considered to be
some of the major causes of
militancy in Pakistan and
elsewhere.

5. Effects Of Terrorism On Economy
According to the Pak-US Business Council Report
(2009), our economy has so far suffered directly or
indirectly a huge loss of $35 billion (official figure is
just the double of it. i.e. $70 billion).
Due to widespread unrest and political uncertainty in
Afghanistan, large quantities of our food
items/commodities are smuggled to Afghanistan,
which ultimately leads to acute food grain scarcity
within our country.
According to Pakistan’s Finance Ministry, Pakistan
suffered directly or indirectly loss of Rs.2080 billion
in the war against terror from 2004-05 to 2008-09
which badly affected the country’s economic
development.

6. Economic Cost
Higher expenditures on defence and police.
Losses of human life.
High inflation.
Dislocation of economic activities.
Damages to property.
Slowdown overall economy.
Decline in investments.

7. Cost of War On Terror
During the last 10 years the direct and
indirect cost of war on terror incurred
by Pakistan amounted to $ 67.93 billion
or Rs.5037 billion.
The direct and indirect costs to the
economy is most likely to rise further.

10. Foreign Investments
In 2009,Foreign Direct Investment (FDI) could not improve
and fell steeply by 52 per cent.
Industrial units got closed down, workers laid off, capital
transferred and entrepreneurs threatened for life.

11. Pakistan Cricket Board
PCB suffered a loss of 51.22million dollars
after attack on Srilankan cricket team .

12. Pakistan Tourism Industry
Pakistan tourism industry suffered a loss of
44 million dollars.

13. How To Stop Terrorism
If the feeling of injustice is unjustified it
can be removed.
By changing the policies Against
militants.
Attack terrorists and their capacity to
operate.

14. Thanks For Attention