Terrorism and its Impact on Pakistan's Economy

1. Introduction

Terrorism is a curse. Since the start of Anti-terror campaigns, an overall sense of uncertainty has prevailed in the country. It has emerged in different countries for different reasons to accomplish, but the cases behind their inception were identical such as poverty, unemployment, injustice, corruption etc But still the question arises that What are the factors responsible for boosting terrorism? What are the impacts of terrorism on Pakistan's Economy? Pakistan have to take effective steps to expunge the terrorism by ensuring justice, promoting education, rising employment opportunities and development of channel of communication.

What is Terrorism?

Terrorism is a art of demanding at own prescribed rules from the any government or authority. However, it is believed that so far not any single definition is came into light through majority consensus. Islam is not a origin of terrorism, it is mere a propaganda by the western media. If we look back into history, we found from 1941-1948, 249 terrorist acts are recorded which are committed by Jewish Organization notably "Stunt Gangs"followed by Ignor and Hegna.

Causes of Terrorism:

Pakistan as a developing countries faced serious problems since its inception and some of them sow their dragon teeth in the soil of Pakistan to give birth to terrorism, such as;

Growing poverty affects the whole nation to cause terrorism. Population of Pakistan is 168.23 million by 2009, out of this 35-50% of population lives below the poverty line. In rural areas people do not have to eat two alternatives to meet their basic needs.

Corruption and injustice started rising since 1947 and did not stop, still rising above the maturity. Pakistan stays at 42nd position in the worlds providing justice and establishing sound departments. Injustice irks the society in scores to go for alternatives.

Unemployment and ineffective quota system does not meet both ends. Lack of employment encouraged Kalashnikov culture in affected areas and people divert their support from government to Taliban.

The major factor behind terrorism in Pakistan is declining standard of education and its implementation. Due to improper setup in rural areas, students were not benefited with education. In Pakistan there are only 51 Universities mostly erected in Urban areas.

Impacts of Terrorism on Pakistan's Economy:

Terrorism has greatly affected the foreign investment in Pakistan. Foreign investment is decline to $910.20 million from $1.4 billion in FY 08-09. Dye to decline in investment poverty and unemployment rises. Poverty have reached to 41.4% from 37.5% in 2008-09. Due to unstoppable terrorism acts in Pakistan world bank has blocked two lending key loans of worth $820 Million till the conditions ameliorate to the paradigm.

Similarly, Terrorism increases the expensive of the forces to meet their needs to fight against terrorism. Pakistan has received total disbursement of $11,998 million from US under Coalition Support Fund (CSF), out of this amount $3,129 million were economic related aid amounted to $8,869 million.

furthermore, terrorism also promoted smuggling in Pakistan, due to porous border between Pakistan and Afghanistan smuggling becomes the source of culprits and expedients for terrorists to wash their hands from it to meet their financial needs. According to US-Pak business council report 2009, Pakistan is prime victim of Afghanistan's instability and due to which Pakistan economy has so far suffered directly or in directly huge loss of $35 billion.

Conclusion:

Terrorism is a great hurdle in our economic prosperity, political stability, geo-strategic sustainability and energy security. Pakistan has to delink every source that strengthen terrorism aim to destabilize and crippled the economy of Pakistan. Pakistan has already faced huge decline in investments, foreign exchange, trade and privatization. Pakistan has to uproot the plant of terrorism before this plant of causalities, bombings, and hatred sought its enough roots to become a tree of hell.