Economic Impact of 9/11 on Pakistan

966 WordsSep 2, 20104 Pages
ECONOMIC IMPACT OF 9/11 ON PAKISTAN Nine years down 9/11, we note that three countries Afghanistan, Iraq and Pakistan bore the brunt of the aftermath of the dastardly deed. Destruction and mayhem resulting from the occupation of Iraq has regressed it from a booming oil economy into a hotbed of terror attacks. Then Afghanistan, which was already reeling under the impact of the after effects of the Soviet invasion and tribal wars for supremacy, has retrogressed further after the US-led invasion. The Taliban resurgence and machination by various secret services to establish their presence for their nefarious designs, makes Afghanistan a battleground for proxy wars. What is more, Pakistan got sucked into the war on terror, in response to the…show more content…
Due to this depreciation of the currency, it has increased the cost of imports; hence, increasing the prices of various consumer goods. The trade deficit stands at a staggering $20 billion, as against a projected oil import bill of $11 billion which can only be paid by completely depleting the country’s foreign exchange reserves. The trend is unlikely to be reversed. The price of oil five years ago was a mere $25 per barrel. In view of the prevailing environment, fraught with risks, the government is constrained to give top priority to security and is bound to spend more on the security and law enforcing agencies, compromising development expenditures. Countert-errorism efforts, do not entail the high security measures for VIPs only, but in view of the armed forces and security agencies, financial, medical and educational institutions being targeted, allocation of the scarce resources to security has resulted in the acute decline in productive spending in the economy. The law and order situation has deteriorated to such an extent that Pakistan, which was a co-host for the 2011 Cricket World Cup, along with India, Bangladesh and Sri Lanka, has been deprived of the opportunity. It is estimated that the PCB will lose $10.5 million, due to the tournament being taken away from them. According to the Finance Division, in terms of the economic impact, the fallout on Pakistan has also been immense. As a frontline state in the
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