By Ashima Gul
Beneath the surface of terror attacks lies a more sinister threat: economic sabotage that can cripple a nation. As Walter Enders, a renowned economist, and Todd Sandler, a political scientist, noted in their book “The Political Economy of Terrorism” (2012), “Terrorism is a tax on human progress, and the price is paid in lives, liberty, and economic development.”
The casualties are not just human lives, but also economic growth, investment, and development. Beyond the headlines of violence, terrorism wages a relentless battle against a nation’s prosperity.
Economic Fallout of Terrorism
Terrorism casts a long shadow over Pakistan’s economy.
Investment Climate Deterioration:
The specter of violence drives away investors. A Harvard study underscores this, revealing a direct correlation between higher terrorism risk and lower foreign direct investment (FDI).
Infrastructure Damage:
Vital infrastructure, the backbone of any economy, becomes a prime target. The destruction of roads, bridges, and power plants disrupts supply chains, hampers trade, and increases business costs.
Human Capital Loss:
The most valuable asset of any nation – its people – is tragically lost. The loss of skilled workers and entrepreneurs hampers innovation and productivity.
Industries Under Siege:
Sectors like agriculture, tourism, and manufacturing, crucial for Pakistan’s economy, are particularly vulnerable. The ripple effects of these disruptions are felt across the entire economic landscape.
Moreover, terrorism erodes the nation’s soft image – a valuable asset for attracting foreign investment. As analysts often point out, a positive country image is kin to a cashable commodity.
To overcome these challenges, Pakistan is transforming from a victim of circumstance into a master of its destiny. It requires a multifaceted strategy that stitches together threads of security, economic resilience, and social progress. The sacrifices made by the armed forces in defending the homeland cannot be overstated. The journey ahead is arduous, but the rewards are immense: a transformed nation, a beacon of hope.