ISLAMABAD - Pakistan faced $118.3 billion economic loss as an impact of terrorism and the war in Afghanistan on Pakistan’s economy during the last 14 years, said Finance Minister Ishaq Dar yesterday.

Presenting ‘Pakistan Economic Survey-2015-16’, Dar said the country incurred $5.56 billion economic loss during the first nine months (July 15-March 16) of the outgoing financial year 2015-16 as against $9.24 billion loss of the corresponding period of last year.

The cash-starved country faced comparatively less economic losses in these nine months as Zarb-e-Azb and National Action Plan played a role in decreasing terrorism, he said.

The breakup of the losses in different organizations revealed the country faced $0.80 billion loss in exports, $0.01 billion owing to compensation to affectees, $0.07 billion in physical infrastructure, $2.04 billion in foreign investment, $0.01 billion in industrial output, $2.32 billion in tax collection, $ 0.01billion in cost of uncertainty and $0.30 billion in others.

The summary of the losses due to terrorist attacks also shows there was no loss in privatization, which was $0.01 billion in the year (2014-15).

“In order to address the menace of terrorism and violent extremism effectively, Pakistan has crafted a 20-point National Action Plan which outlines various kinetic and preventive measures,” says the report of Pakistan Economic Survey-2015-16.

This report further claimed the comprehensive all-out law-enforcement action, Zarb-e-Azb, launched against all terrorist groups without any discrimination has been remarkably successful.

The Zarb-e-Azb operation which is about to complete has started paying dividend in terms of overall improved security situation in the country, it adds.

This has created an enabling environment for business and investment in Pakistan, says the report, adding both direct and indirect losses to the economy resulting from terrorism have declined.

Pakistan’s successful counter-terrorism efforts are the result of strong domestic political consensus and unanimity on the need to eradicate terrorism in all its forms and manifestations, the report says. It also pointed out that a durable peace and stability in Afghanistan and the region is necessary, among other factors, for further promoting sustainable economic growth in Pakistan.

The direct and indirect cost incurred by Pakistan due to terrorism amounted to US$ 118.3 billion from 2001-16.

The breakup revealed Pakistan incurred losses of $118.3 billion as an impact of the war in Afghanistan during the last 14 years.

The loss was $2.67billion in the year 2001-02, $2.75billion in 2002-03, $2.93 billion in 2003-04, $3.41 billion in 2004-05, $3.99 billion in 2005-06, $4.67 billion in 2006-07, $6.94 billion in 2007-08, $9.18 billion in 2008-09, $13.56 billion in 2009-10, $23.77 billion in 2010-11, $11.98 billion in 2011-12, $9.97 billion in 2012-13, $7.70 billion in 2013-14, $9.24 billion in 2014-15 and $5.5 billion in 2015-16.

This loss was also incurred on exports, compensation to affectees, physical infrastructure, foreign investment, privatisation, industrial output, tax collection, cost of uncertainty and others.

The figures of the losses clearly indicate that 2010-11 proved the highest in terms of loss as the country faced $23.77 billion.

The report further states the conflict and instability in Afghanistan in the aftermath of 9/11 terrorist attacks and their regional implications had immense negative consequences for Pakistan.

“After the US invasion of Afghanistan, Pakistan saw a huge influx of Afghan refugees as one of the main host countries,” says the report, adding there was a sudden rise in the number and scale of terrorist attacks in the country.

The cumulative impact of these developments adversely affected the overall growth rate in all major sectors of the economy.

It further said normal economic and trade activities were disrupted, resulting in higher costs of doing business and significant delays in meeting the export orders around the globe.

As a result, Pakistani products gradually lost their market share to their competitors. Economic growth could not pick up as planned, it added.

“Pakistan continues to be a serious victim of terrorism, including foreign-sponsored terrorism from immediate neighbourhood,” says the report.

A substantial portion of precious national resources, both men and material, have been diverted to address the emerging security challenges and to repair damaged infrastructure during the last several years, it adds.

“In addition to economic losses, cross-border terrorism in Pakistan has also been responsible for untold human sufferings due to indiscriminate and brutal terrorist attacks against civilian population,” says the report.