Terror war to cost $8bn per year

The direct and indirect cost of the war on terror borne by Pakistan is likely to increase to $8bn per annum in the next couple of years from the current $6bn, official sources said here.

According to an official, who requested anonymity, estimates compiled by the Ministry of Finance indicate that during the eight years since 2001, direct and indirect losses to Pakistan’s economy due to the war on terror have been estimated at $34.5bn.

According to the official, the loss of lives and economic cost imposed by the war is now rising to an unbearable level and a very negligible portion of these costs is defrayed by the government’s development partners.

Since 2001, losses of $5bn have been estimated in foreign direct investment, more than $5bn in exports and $5.5bn in privatisation, the official said.

There has also been deterioration in law and order. Travel advisories have been issued against Pakistan by the United States and other major allies in the war on terror, which has resulted in a reduction in the number of intending investors, foreign buyers interested in taking part in the privatisation of major national assets.