Impact of Terrorism in Pakistan

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Impact of Terrorism in Pakistan

In lieu of unlawful violence to inculcate fear and increase coercion, terrorism has become a trending topic in the world today. Pakistan, a country in South Asia bordered by Afghanistan and India has been a country worthy of speculation due to the rate of terrorism and tribal wars that have quickly taken over the country. The sporadic effects of these attacks have begun to shatter what used to be one of Asia’s fastest growing economies.

Impact on GDP

Pakistan’s GDP has been one of the main economic factors that have been affected by the terrorism exposed to the country. Consumers who were used to going out on a regular basis and purchasing high volumes of merchandise have been afraid to do in the recent years. This has caused a large decrease in consumer spending, which in turn has had a negative impact on the Pakistan economy. “As the GDP growth rate has gone down from 8.40% in 2004-05 to 5.80% in 2007-08 and more recently it has reduced to 2.10% in 2008-09” (The Business Exchange). According to experience curves and studies that have been conducted, it has been concluded that it will take the Pakistan economy 33 years to double its size.

Impact on Exports

Pakistan conducts most of its trade with the United States and the European Union and furthermore, according to sources, 50% of its exports are to these two locations. However, due to terrorism threats on and from Pakistan, foreign governments have discouraged its citizens to visit Pakistan. Several big companies who have had interest in procurement of textile (Pakistan’s largest export product) have taken their business to neighboring countries such as: India, Hong Kong, and Singapore. Pakistani business men have been denied a visa or scrutinized greatly before they have been granted access to travel abroad and this has had a huge effect on their exports. “The foreign buyers have exploited the situation to procure goods at lowest values. Pakistani knitwear is

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