(Karachi P.R. 18th Nov, 2016) Shaikh Khalid Tawab, Sr. Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) stated that war on terrorism is the main cause of low economic development of Pakistan that has created hurdles in socio-economic prosperity, political stability and geo-strategic sustainability. In a press statement, he indicated that the war on terror not only losses the human lives (which is irreparable), also has eroded the investment climate, declined the economic activity and enhanced unemployment and poverty in Pakistan.
While quoting the statistics as revealed by SBP in its Annual Report, he elaborated that this war has created loss to US$ 118.3 billion in monetary term since 2003 which has increased the public debt of Pakistan. He added that these losses includes declining in exports, compensation to the affectees including the internally displaced people and others, damage of physical infrastructure, declining of foreign investment, declining of industrial output, tax collection and cost of uncertainty. He further added that a substantial portion of precious national resources, both men and material, have been diverted to address the emerging security challenges and to repair damaged infrastructure during the last fourteen years. While talking about the investment, he said that the investment as percentage of GDP has declined to 15.2 percent in 2016 against 22.7 percent in 2008 while the foreign direct investment which was US$ 5.4 billion in 2008 has now stood at US$ 1.2 billion in 2016. A part from foreign investors, the local investors is also adopting the wait and see stance in making investment in Pakistan and exporters are unable to fulfill their orders due to disruptions in supply chains among other reasons, he added.
In addition to above, he added that the tourism industry of Pakistan contributed significantly $500-600 million in revenue has collapsed and facing significant losses since 2001 as internationally peoples are reluctant to come to Pakistan. The war on terror has badly ruined the soft image of Pakistan in international market, which can be considered as cashable commodity in economy of various countries. To compensate the after affects of the war against terrorism on Pakistan economy, he urged the government to take the significant measures as “we want to see safe and prosperous Pakistan which is only possible through educating the people, and making industrialization, and creating employment opportunities”.
Maher Alam Khan
Acting Secretary General