ISLAMABAD: Pakistan’s ‘war on terror’ has cost the country at least $118 billion so far, a new central bank report said.
The amount equals to over one-third of Pakistan’s gross domestic product. The State Bank of Pakistan (SBP) released its annual report on Thursday showing extremist violence costing the country $118.3 billion – in direct and indirect losses from 2002 to 2016.
“Both the economic and social development has been severely hampered by the terrorism-related incidents,” the report said.
Pakistan has become a pivotal United States (US) ally in the battle against extremism after the September 11, 2001 attacks – which spurred the US into invading Afghanistan.
A Coalition Support Fund (CSF) was approved by the US to support Pakistan in the war – with an annual release of around $1 billion since 2002 and as of last year, Pakistan has received a total of $14 billion under it.
The country has also been waging a fight against home-grown insurgents since at least 2004. The bank said that apart from the sufferings, casualties and mass displacement, the war also drove away foreign investment, stalled the domestic investment and slowed down trade – especially the exports.
The economy, however, has recently improved as the International Monetary Fund (IMF) said in October that Pakistan has emerged from crisis and stabilised its economy after completing a bailout programme.
