In lieu of unlawful violence to inculcate fear and increase coercion, terrorism has become a trending topic in the world today. Pakistan, a country in South Asia bordered by Afghanistan and India has been a country worthy of speculation due to the rate of terrorism and tribal wars that have quickly taken over the country. The sporadic effects of these attacks have begun to shatter what used to be one of Asia’s fastest growing economies.
Impact on GDP Pakistan’s GDP has been one of the main economic factors that have been affected by the terrorism exposed to the country.Consumers who were used to going out on a regular basis and purchasing high volumes of merchandise have been afraid to do in the recent years. This has caused a large decrease in consumer spending, which in turn has had a negative impact o
...n the Pakistan economy. “As the GDP growth rate has gone down from 8. 40% in 2004-05 to 5. 80% in 2007-08 and more recently it has reduced to 2.
10% in 2008-09” (The Business Exchange). According to experience curves and studies that have been conducted, it has been concluded that it will take the Pakistan economy 33 years to double its size.Impact on Exports Pakistan conducts most of its trade with the United States and the European Union and furthermore, according to sources, 50% of its exports are to these two locations. However, due to terrorism threats on and from Pakistan, foreign governments have discouraged its citizens to visit Pakistan. Several big companies who have had interest in procurement of textile (Pakistan’s largest export product) have taken their business to neighboring countries such
as: India, Hong Kong, and Singapore.Pakistani business men have been denied a visa or scrutinized greatly before they have been granted access to travel abroad and this has had a huge effect on their exports.
“The foreign buyers have exploited the situation to procure goods at lowest values. Pakistani knitwear is better in quality than its competitors but fetch the lowest rates due to the denial of direct contact with outside businessmen” (Pu. edu). Exports are said to have gone down from $19.
22 billion to $6. 1 billion dollars amidst the reduction of imports.The trade balance/deficit is -4. 5(billion $) and one of the reasons for this is because of the public global image that has been portrayed of Pakistan.
Impact on FDI In the country where macroeconomic indicators are plunging as a result of political turmoil and terrorism, it is obvious that not only foreign investors but local investors will be petrified about investing to get profit. As a result of this, the Pakistan FDI has reduced by about 1. 475 billion or 52. 8% during its last fiscal year(Pakistan News Watch).Some of the reasons that have been stated for this sharp decline are as follows: future uncertainty, poor law and order, and power shortages. Other Effects of Terrorism on the Pakistan Economy * The exchange rate has gone up from 60.
5(Rs/US$) to 84. 5 (Rs/US$) which has a bad effect on the economy. * According to recent surveys, it cost Rs340 billion on terrorism which has caused the economy more than $35million in lost export, revenue, opportunities e. t.
c. * The inflation rate is currently at a high of 18.
85%. Pakistan tourism industry suffered a loss of 44 milion dollars in the past year and has gone down by 6% despite various campaigns. EFFECTS ON PAKISTAN: Afghan refugees US military strikes the NWFP influences.
Taliban are increasing. Taliban elements and their mentors Al—Qaeda, moved into the major cities. It has forced the state to station many divisions of army for law and order at the cost of earning the opprobrium of “use of force” against terroists in SWAT and FATA. The loss of foreign direct investment and tourism.
Visa and job opportunities for Pakistan is from these areas to the Middle East are being increasingly curtailed. The rugged border terrain of nearly 1,500 Km at the height of 10,000 to 15,000 feet, with no communication infrastructure, has enabled the foreign elements to fully exploit the situation. Pakistan has dispatched almost 70-80,000 of troops to the tribal regions. This preparation has to be dispelled that fight against terrorism is a now form of warfare where the attackers are insidious, elusive and yet create sense of create sense of intimidation and terror.On the political side, Pakistan’s international political isolation ceased immediately and it assumed the role of frontline state yet again. Despite the AQ Khan nuclear proliferation crisis, the US gave Pakistan the status of ‘Major Non-Nato Ally’, offered Kerry-Lugar Bill.
Debate in Pakistan either war against terror is ours or of US. Acute economic crisis. Pakistan has adversely affected by terrorism than any other country of the world. Although, Pakistan is a victim of terrorism is being labeled as a state sponsoring terrorism.
Lot of time and energy of Pakistan is being consumed to make world understand
that Pakistan is not the sponsor of terrorism but it is a victim, and while doing so it is being forced to make compromises on vital interests. Even the friendly countries like China, Iran, and Indonesia started looking towards Pakistan with suspicion. As far as NATO operations in Afghanistan are concerned, they are limited by inadequate number of troops, and with difficulties of terrain primitive tribal culture, weapon stocks and drug money. The Taliban are resurgent.In fact it is a cumulative effect of many factors: due to divisions of resources to Iraq war, NATO’s insufficient level of troops, rise in opium trade, limited control of Karzai government around Kabul, poor governance, high level of corruption and unemployment, lack of reconstruction, rise in violence and rampant warlordism. A nagging perception in some quarters in the West, especially the US, that Pakistan is not “doing enough”.
Solutions: In fact, no military solution from the air or ground will ever be found to solve the deplorable conditions – grinding poverty and benign neglect – that breed violence, hatred and rebellion.Obama should avoid Bush’s Policies of use of force to avoid further military and financial losses. Involving UNSC & OIC would be in the interest of US to minimize anti US sentiments in the Muslim world. Interfaith dialogue can clear the misconceptions against each other.
Solution of issues like Kashmir and Palestine The Muslims should discourage extremist groups in their social life. Madressa reforms Positive role of world media “There is no silver bullet that can address global terrorism in all its complexity,” writs Maleeha Lodhi in “The Threats of all Threats”.Every continent has seen acts of terrorism. Perpetrators
belong to diverse backgrounds, ethnicities and faiths. She proposed a broad-gauge counter-terrorism strategy based on nine ‘Cs’.
1) Comprehensiveness: A comprehensive, multifaceted strategy is needed that encompasses law enforcement, political, social, cultural, financial and diplomatic measures. 2) Consensus at the global level is required on a strategy incorporating both short-and long-terms 3) Causes and conditions that breed, encourage and contribute to terrorism must be objectively identified and addressed. ) Confusion about the definition of terrorism and mixing every Muslim with terror is discouraging. 5) Capabilities must be improved and national capacities strengthened across he spectrum to pursue terrorists and prevent terrorist activities. 6) Cooperative rather than coercive national and international strategies should be pursued so that the reaction to counter-terrorism measures does not compound the problem. 7) Civil liberties and principles of good governance must be upheld in the fight against terror, because real security can only be achieved through respect for human rights.
) Civilization and cultural: dialogue and understanding including engaging at the battle for the hearts and minds, must become an integral part of global consensus-building to evolve a joint strategy.Such a dialogue must be premised on the understanding that the root cause of friction between civilization are not primarily religious differences, but mainly issues of power, competing political and economic interests, policies and misunderstandings. 9) Conference at the summit level must be called to craft and coordinate an approach based on these elements. 0) There are two dimensions to the problem in Afghanistan- strategic depth and nation building.
11) Militarism was dominant in George Bush’s policy and it was not a comprehensive approach. 12) President Obama’s policy talks about a regional
approach and China is important part of this regional concept. 13) The primary reason for the unpopularity of the government in Afghanistan is lack of social development activities. 14) Afghanistan needs to have a force which is sustainable in its own budget. 5) Afghanistan problem cannot be solved in isolation and there is need for comprehensive engagement with getting confidence of Pakistan by stopping Indian interfernce in Afghanistan.
16) The role of SCO in the context of Afghanistan should also be considered while studying this problem. CONCLUDING REMARKS: Today terrorism is complex in scope, even across the continents non-state actors. Countering this multi-headed phenomenon require multi-pronged and sustained policy by the governments across the globe.Deprivation and an unjust political and socioeconomic dispensation rapidly give rise to frustration. The remedy lies in a tolerant and democratic society.
However to enable the United Nations to evolve an effective strategy for this purpose it I imperative to define terrorism that may be acceptable globally. Also make a distinction between terrorism and legitimate struggle for freedom and right of self-determination, the denial of which can breed terrorism and a threat to “peaceful co-existence”. But Dr. Martin Luther King logically said, “Injustice anywhere is a threat to justice everywhere.
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