Zarb-e-Azb reduces overall impact of terror on Pak economy

ISLAMABAD: Although Operation Zarb-e-Azb cost Rs45 billion to the national exchequer during the fiscal year 2014-15 but it has started paying high dividend in terms of improved law and order and economy as the impact of war on terror has decreased drastically on Pakistan’s economy which had to suffer $4.53 billion, the lowest figure since 2006-07.
The budget documents show that the federal government released Rs45 billion for the military offensive Zarb-e-Azb during the last fiscal year whereas Rs100 billion have been allocated in the fiscal year 2015-16. The allocated amount of Rs100 billion would be spent for the military operation, infrastructure of the operation-hit area and rehabilitation of the internally displaced persons (IDPs).
However, the military operation against the militants in tribal areas has already started paying which is already reflected in the Economic Survey of Pakistan in terms of impact of war on terror on Pakistan’s economy as well as reduction in incidents of terrorism.
A top-level official in the federal government while talking to The News said this is an investment for the better future of Pakistan and people will see its benefits in the long run. “Once the results of Zarb-e-Azb are achieved there would be peace in the country and Pakistan’s economy would automatically start boosting hence the government felt no hesitation for spending and allocating this amount,” he commented.
According to a study included in the Economic Survey of Pakistan 2014-15, the cumulative impact of these developments adversely impacted the overall growth rate in all major sectors of the economy. Pakistan continues to pay a heavy price both in the economic and security terms due to this situation and a substantial portion of national resources, both men and material, have been diverted to address the emerging security challenges for the last several years.
“The rise of violent extremism and increase in terrorism in Pakistan due to instability in Afghanistan not only caused serious damage to Pakistan’s economy but has also been responsible for widespread human suffering due to indiscriminate attacks against the civilian population,” mentions the Economic Survey of Pakistan.
The report says that during the last 14 years the country has to suffer unbearable losses directly and indirectly. The total loss during these 14 years has reached to $106.98 billion, equivalent to Rs8702.75 billion.
During 2001-02 when the United States started its war against terror in Afghanistan after the incident of 9/11, the country had to bear the loss of $2.67 billion. Similarly, the next fiscal year too was not as much deadliest for the country as the total losses that Pakistan had to face during 2002-03 were $2.75 billion. In the next year i.e. 2003-04 total losses increased to $2.93 and $3.41 billion in 2004-05 whereas the losses reached to $3.99 billion in 2005-06, respectively.
The fiscal year 2006-07 was the deadliest year of the Shaukat Aziz and Pervez Musharraf era as the country had to bear the loss of $4.67 billion that year, the highest one in the first five years since the war against terror started.
The next few years proved more deadly for country’s economy as well as in terms of human losses as the incidents of terrorism increased gradually in the coming years. The losses to Pakistan’s economy increased to $6.94 billion in 2007-8, $9.18 billion in 2008-9 and $13.56 billion in 2009-10.
In 2010-11 highest losses occurred to Pakistan’s economy as during that fiscal year the country had to bear the loss of $23.77 billion. The next fiscal year the losses again reduced to $11.98 billion in 2011-12 and the following year these losses further decreased to $9.97 billion in 2012-13. Since the PML-N government came into power in June 2013 and during its first fiscal year i.e. 2013-14, the losses on country’s economy because of the impact of war on terror reached to $6.69 billion. Similarly, during the first nine months of the current fiscal year, the estimated losses have reached to $4.53 billion in 2013-14.
Security experts believe that the law and order situation in the country has improved especially after the launching of Operation Zarb-e-Azb in tribal areas. Terrorist attacks have also reduced since the military operation was launched as during first five months of the current year, 329 people, including 246 civilians and 83 security forces, lost their lives, whereas 1,124 militants and insurgents were killed in various military operations and search operations across the country.
Similarly, it has been mentioned in the Economic Survey of Pakistan that after adoption of the National Action Plan by the All Parties Conference (APC) and its subsequent implementation which is overseen by the apex committees of the provinces. There has been improvement in the overall security situation in Pakistan in the recent months as a result of concerted actions by the government.