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The purpose of this study is to analyse the effects of the two major
factors of terrorism and political instability on Pakistan’s
economy. Pakistan’s involvement in US war with Afghanistan
along with sectarian and ethnic conflicts, are the main sources of
spreading terrorism in Pakistan. This situation became the major
cause of slowing down economic growth in Pakistan. In this study
the positive and negative impacts of terrorism have been
presented. After Pakistan’s participation in war against terror, the
flow of foreign aid picked up but this aid was not for the
development projects, it was just for the defense purpose.
Terrorism caused much uncertainties as well as destruction in the
country. The burden of the largest number of IDPs in the history
of Pakistan badly effected Pakistan’s economy. Terrorism is also a
cause of closure of many industries in Pakistan. Pakistan’s security
situation gave a bad impression to foreign tourists. Foreign aid
could not recover all the losses which Pakistan had to face due to
terrorism. Pakistan had need technological and economic
assistance for promoting industries and institutions to uplift its
economy. In spite of limited resources and weak economy,
Pakistan has spent a huge sum on operation against the militants
groups. Pakistan participation in Us war against terror put extra
burden on Pakistan’s economy.
Asifa Khalid. (2020) Impact of Terrorism on The Economy of Pakistan, Journal of Pakistan Vision, Volume 21, Issue 1.
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