WHILE it is an acknowledged fact that the haunting spectre of terrorism has made a significant contribution towards slowing down the country's economic activity, the Prime Minister believes that it has not affected the economy. However, at the same time, speaking at the 5th International Defence Exhibition and Seminar (IDEAS) 2008 at Karachi on Monday, he maintained that the "main objective of the terrorists is to harm Pakistan by incapacitating its economy". He probably thinks that despite efforts terrorists have not made any headway in their mission. Somehow, he ignores the glaring reality that terrorism has, indeed, told upon the entire gambit of life, social as well as economic. An abiding sense of insecurity would naturally inspire the perception that capital is not safe and both local and foreign entrepreneurs would fight shy of putting in their money in a business venture in the country. Deaths and kidnappings of foreign experts working on projects would inevitably put their functioning on hold. This is what clearly comes out of the flight of the capital rather than its inflow, the crash at the bourse and the fall in the value of the rupee. Instead of glossing over the reality that the disturbance of social life has affected economic life the government should be reviewing its current policies that have failed to check the scourge and listen to saner counsels of safeguarding the national interests. There should be no delay in implementing its three-pronged strategy. The unending military action and militants' response would call for serious reflection on where the country is heading.