• Wednesday, May 22, 2019

Washington's war against terror cost Pakistan $252bn, US indebted to Pakistan

Discussion in 'Pakistan Economy' started by Baby Leone, Apr 4, 2019.

  1. Baby Leone

    Baby Leone SENIOR MEMBER

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    ISLAMABAD: Pakistan’s economy has sustained a colossal loss of $252 billion owing to the US-led war against terrorism which is nearly eight times more than the financial assistance given by Washington to Islamabad.

    The $252 billion price has been estimated by economist Dr Hafiz Pasha in his book titled ‘Growth and Inequality –Agenda for Reforms’, which was rolled out on Tuesday in the presence of three cabinet ministers including Finance Minister Asad Umar.

    The cost is twice the amount that the Ministry of Finance had earlier published in Economic Survey of Pakistan. The $252 billion loss is equal to 93 per cent of the total size of the country’s economy.

    “The estimated total cost of terrorism to the economy of Pakistan up to 2017-18 is $251.8 billion”, reads the book, sponsored by German Institute Friedrich Ebert Stiftung (FES).

    The book noted that the aggregate indirect cost due to war against terrorism was $179.1 billion, while the direct cost was $72.7 billion.

    In comparison to this, the total external assistance received from Washington after Pakistan joined the war in Afghanistan is estimated at $33 billion.

    The bulk of $33 billion, over two-thirds, has been security assistance, mostly in the form of reimbursement from the Coalition Support Fund.

    The $252 billion cost is almost eight times the assistance received from the Washington.

    The book also underlines that the finance ministry’s methodology to work out the cost of war against terrorism is “defective”.

    The finance ministry had estimated nearly $127 billion total cost to economy.

    The author of the book noted that the largest cost item is the reduction in tax collection.

    In actuality, the cost is the reduction in the overall tax base and not just in revenues.

    The book also underlines that over 70,000 people have been killed in Pakistan due to war against terrorism.

    It is estimated that over 35 per cent are civilians with 11 per cent being security personnel.

    The remainders, 54 per cent, are terrorists. The highest incidence of acts of terrorism had been in erstwhile Federally Administered Tribal Areas, followed by Khyber-Pakhtunkhwa and Balochistan.

    There was a large-scale influx of three million refugees into Pakistan after the 9/11 terrorist attacks.

    From 2002 onwards the frequency of suicide attacks and bombing increased rapidly, reaching a peak of 76 in 2008 and receded gradually thereafter to 43 in 2013.

    Direct Cost

    Pasha estimates the direct cost on account of higher expenditure on security, both public and private, damage to infrastructure and property and other costs.

    Pakistan’s participation in the war in Afghanistan required an increase in budget allocations for security by the federal government.

    Prior to 9/11, there had been modest growth annually in real defense expenditure of less than one per cent.

    Thereafter, the growth rate rose to 1.3 per cent initially, then to 3.1 per cent and in recent years to as high as 6.1 per cent.

    The cumulative increase in defense spending from 2001-02 to 2017-18 is estimated at $38.5 billion.

    The expenditures on maintaining law and order also grew from 1.5 per cent annually prior to 9/11 to now 7.8 per cent.

    The cumulative extra expenditure under this head is estimated at $18 billion.

    Similarly, the increased expenditure on private security are estimated at $7.7 billion.
     
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  2. war&peace

    war&peace ELITE MEMBER

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    Correction
    Washington's war of terror cost Pakistan $252bn, US indebted to Pakistan
     
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  3. Baby Leone

    Baby Leone SENIOR MEMBER

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    i guess we should have this as sticky thread so that the whole world knows the reality.
     
  4. HammerHead081

    HammerHead081 FULL MEMBER

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    The whole world knows the reality but they don't care because our skin color isn't white.
     
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  5. Baby Leone

    Baby Leone SENIOR MEMBER

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    its your perception not reality every one think that Pakistan is the one who benefited with ths war when the reality is totally opposite.
     
  6. Mugen

    Mugen FULL MEMBER

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    The biggest problem is we don't seem to care enough ourselves. Its like we have no self respect so why would any one else respect us?
     
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  7. war&peace

    war&peace ELITE MEMBER

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    That's true ..if Mushy did not bend over before uncle sam. we would have not suffered these losses
     
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  8. HammerHead081

    HammerHead081 FULL MEMBER

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    Gora complex. Just see IK meeting with all foreign vloggers and not one local. So sad to see.
     
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  9. Baby Leone

    Baby Leone SENIOR MEMBER

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    i wonder why soo many foreig Vlogers are rushing to Pakistan lately.
     
  10. Cobra Arbok

    Cobra Arbok SENIOR MEMBER

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    Another reason it's good India never got into America's war on terror and balanced relations with Russia and the US.
     
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  11. Chowkidar placemat

    Chowkidar placemat FULL MEMBER

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    The cost Pak paid for hosting OBL

    It's a beautiful country I believe.
    My grandfather lived in Lahore and used to like it there.

    I think Ind and Pak should have free Visa and should be able to buy property in each other's places.
     
  12. kris

    kris FULL MEMBER

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    This Is what happens when you fight someone else's war
     
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