Economy suffers $10 6.98 billion losses in 14 years

Pakistan's economy has suffered $106.98 billion loss equivalent to Rs 8,702.75 billion [directly and indirectly] during the last 14 years due to terrorism, revealed the FY 2014-15 Economic Survey launched here Thursday. According to the survey, Pakistan's overall economy suffered $11.16 billion during 2013-14 and 2014-15 due to terrorist attacks across the country. Only $0.05 billion has been given as compensation to the victims of terrorism related incidents during the two years.
The overall losses which were $6.63 billion in 2013-14, declined to $4.53 billion in 2014-15 [estimated on the basis of nine months actual data]. The rise of violent extremism and increase in terrorism in Pakistan due to instability in Afghanistan not only caused serious damage to Pakistan's economy but has also been responsible for widespread human suffering due to indiscriminate attacks against the civilian population", the survey further stated.
The situation disrupted Pakistan's normal economic and trading activities which not only resulted in higher costs of doing business but also created disruptions in the production cycles, resulting in significant delays in meeting the export orders around the globe. As a result, Pakistani products have gradually lost their market share to their competitors. Consequently, economic growth could not pick up as planned, according to the survey. It stated that investment outflow and negative trends of out sourcing of capital in Pakistan has further added to the woes of dwindling performance of the export-oriented industry.
The survey further noted that Pakistan needs enormous resources to enhance productive capacity of the economy by repairing damaged infrastructure and to create a favourable investment climate. The security situation will be the key determinant of future flow of the investment, it stated. However, it observed that after adoption of National Action Plan by the All Parties Conference (APC) and its subsequent implementation which is overseen by the apex committees of the provinces, there have been improvements in the overall security situation in Pakistan in recent months. But 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, the Survey added.