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ISLAMABAD: The government is making efforts to calculate the latest estimates of losses borne by Pakistans economy in the last 12 years after becoming an ally of the US in its war against terrorism since 9/11, 2001, The News has learnt.
These mind boggling figures, which are in the process of finalisation, might be released in the upcoming Economic Survey 2012-13, which will be launched just ahead of next budget announcement. The decision to insert latest estimates on war on terror will be taken by the incoming government of the PML-N but official circles confirmed that efforts are underway to come up with latest estimates on total losses.
According to very initial and rough estimates, the losses incurred by different sectors of Pakistans economy in the last 12 years might go close to $100 billion mark.In return, Pakistan had so far received around $15 billion through official channels on account of over $10 billion in shape of Coalition Support Fund (CSF) compared to official losses of $68 billion till fiscal year 2010-11, so only 14 percent losses were reimbursed by the US.
In the head of military assistance in shape of FMF (Foreign Military Fund), Pakistan received $2.1 billion, grants for the economy to the tune of $1.5 billion, budgetary support of $1.2 billion and debt write- off $1.5 billion. However, it is not yet known that how much amount the US disbursed through non governmental organisations (NGOs), international NGOs and some other initiatives such United Nations in disasters like earthquake and floods.
When spokesperson for the US embassy was contacted on Sunday, she said that the US provided $3.5 billion assistance to Pakistan since October 2009 in shape of civilian and military aid but it did not include reimbursement amount of CSF. She concluded by promising to share overall assistance being provided by the US to Pakistan on all heads including CSF, civil and military assistance and all kinds of initiatives since 9/11, 2001 within coming week.
The Finance Ministry, in consultation with the Foreign Office and other ministries are working to calculate latest figures on losses incurred by Pakistans economy after becoming frontline state in the US-led war against terrorism, official sources told The News.
A senior official who is involved in the budget making process told this scribe that the Foreign Office was taking lead on this subject while the Finance Ministrys Adviser Wing was playing crucial role to come up with latest estimates.
Two years back, the former PPP-led regime had unveiled in the Economic Survey 2010-11 that Pakistans financial losses stood at $68 billion for various sectors of the economy in the aftermath of becoming an ally in the US-led war against terrorism. But the government had not given update on its losses in the last Economic Survey of 2011-12 but now efforts are underway to come up with latest estimates prepared on the basis of projections shared by all relevant ministries on official basis.
The cost of war on Pakistans economy had risen to $17.8 billion for the financial year 2010-11. Pakistan had to face innumerable losses on account of precious human life losses as well as financial losses incurred to the countrys economy.
Consequently, economic growth slowed and demands for imports reduced with consequential decline in tax collection and inflows of foreign investment were naturally adversely affected, accentuated by the travel bans issued by western governments to its entrepreneurs.
The cost of war incurred losses to Pakistan was standing in the range of $2.669 billion in fiscal year 2001-02, $2.749 billion in 2002-03, $2.932 billion in 2003-04, $3.410 billion in 2004-05, $4.670 billion in 2005-06, $4.670 billion in 2006-07, $6.940 billion in 2007-08, $9.180 billion in 2008-09, $13.560 billion in 2009-10 and $17.830 billion in 2010-11, totalling the cost of war to $67.926 billion in the last 10 years.
Alone in fiscal year 2010-11, the countrys exports dwindled to the tune of $2.90 billion, compensation to affectees caused $0.80 billion losses, damage to physical infrastructure $1.72 billion, foreign investment declined by $2.10 billion, privatisation could not materialise $1.10 billion, industrial output impacted negatively by $1.70 billion, tax collection nosedived by $2.10 billion, cost of uncertainty $2.90 billion, expenditures overrun $1.60 billion and others $ 0.90 billion, totalling the cost up to $17.82 billion just in one year.
Pakistan continued to pay a heavy price in terms of both the economic and security terms. A large portion of its resources, both men and material, are being consumed by this war for the last several years.
The economy was subjected to enormous direct and indirect costs which continued to rise from $2.669 billion in 2001-02 to $13.6 billion by 2009-10, and rose to $17.8 billion in 2010-11, and moving forward, the direct and indirect costs to the economy might rise further.
Despite repeated attempts to get version of Secretary Finance Dr Waqar Masood, he did not reply SMS till filing of this report.
These mind boggling figures, which are in the process of finalisation, might be released in the upcoming Economic Survey 2012-13, which will be launched just ahead of next budget announcement. The decision to insert latest estimates on war on terror will be taken by the incoming government of the PML-N but official circles confirmed that efforts are underway to come up with latest estimates on total losses.
According to very initial and rough estimates, the losses incurred by different sectors of Pakistans economy in the last 12 years might go close to $100 billion mark.In return, Pakistan had so far received around $15 billion through official channels on account of over $10 billion in shape of Coalition Support Fund (CSF) compared to official losses of $68 billion till fiscal year 2010-11, so only 14 percent losses were reimbursed by the US.
In the head of military assistance in shape of FMF (Foreign Military Fund), Pakistan received $2.1 billion, grants for the economy to the tune of $1.5 billion, budgetary support of $1.2 billion and debt write- off $1.5 billion. However, it is not yet known that how much amount the US disbursed through non governmental organisations (NGOs), international NGOs and some other initiatives such United Nations in disasters like earthquake and floods.
When spokesperson for the US embassy was contacted on Sunday, she said that the US provided $3.5 billion assistance to Pakistan since October 2009 in shape of civilian and military aid but it did not include reimbursement amount of CSF. She concluded by promising to share overall assistance being provided by the US to Pakistan on all heads including CSF, civil and military assistance and all kinds of initiatives since 9/11, 2001 within coming week.
The Finance Ministry, in consultation with the Foreign Office and other ministries are working to calculate latest figures on losses incurred by Pakistans economy after becoming frontline state in the US-led war against terrorism, official sources told The News.
A senior official who is involved in the budget making process told this scribe that the Foreign Office was taking lead on this subject while the Finance Ministrys Adviser Wing was playing crucial role to come up with latest estimates.
Two years back, the former PPP-led regime had unveiled in the Economic Survey 2010-11 that Pakistans financial losses stood at $68 billion for various sectors of the economy in the aftermath of becoming an ally in the US-led war against terrorism. But the government had not given update on its losses in the last Economic Survey of 2011-12 but now efforts are underway to come up with latest estimates prepared on the basis of projections shared by all relevant ministries on official basis.
The cost of war on Pakistans economy had risen to $17.8 billion for the financial year 2010-11. Pakistan had to face innumerable losses on account of precious human life losses as well as financial losses incurred to the countrys economy.
Consequently, economic growth slowed and demands for imports reduced with consequential decline in tax collection and inflows of foreign investment were naturally adversely affected, accentuated by the travel bans issued by western governments to its entrepreneurs.
The cost of war incurred losses to Pakistan was standing in the range of $2.669 billion in fiscal year 2001-02, $2.749 billion in 2002-03, $2.932 billion in 2003-04, $3.410 billion in 2004-05, $4.670 billion in 2005-06, $4.670 billion in 2006-07, $6.940 billion in 2007-08, $9.180 billion in 2008-09, $13.560 billion in 2009-10 and $17.830 billion in 2010-11, totalling the cost of war to $67.926 billion in the last 10 years.
Alone in fiscal year 2010-11, the countrys exports dwindled to the tune of $2.90 billion, compensation to affectees caused $0.80 billion losses, damage to physical infrastructure $1.72 billion, foreign investment declined by $2.10 billion, privatisation could not materialise $1.10 billion, industrial output impacted negatively by $1.70 billion, tax collection nosedived by $2.10 billion, cost of uncertainty $2.90 billion, expenditures overrun $1.60 billion and others $ 0.90 billion, totalling the cost up to $17.82 billion just in one year.
Pakistan continued to pay a heavy price in terms of both the economic and security terms. A large portion of its resources, both men and material, are being consumed by this war for the last several years.
The economy was subjected to enormous direct and indirect costs which continued to rise from $2.669 billion in 2001-02 to $13.6 billion by 2009-10, and rose to $17.8 billion in 2010-11, and moving forward, the direct and indirect costs to the economy might rise further.
Despite repeated attempts to get version of Secretary Finance Dr Waqar Masood, he did not reply SMS till filing of this report.
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