CSS Forums - Terrorism and Its Impact on Pakistan's Economy (For 2010)

Dear Seniors and Members,

I have written an essay on;
Terrorism, its causes and its Impact on Pakistan's Economy.
Kindly Read it,

And please Comment to let me help to evaluate myself.

[CENTER][B][COLOR=blue]Terrorism and its Causes and its Impact on Pakistan’s Economy[/COLOR][/B]
[B][COLOR=black]Or[/COLOR][/B]
[B][COLOR=blue]Terrorism and its Impact on Pakistan’s Economy[/COLOR][/B][/CENTER]

[B]1. Introduction[/B]
[B]2. What is Terrorism[/B]

[B]3. Causes of Terrorism[/B][LIST][*]a. Poverty[*]b. Injustice and Venality[*]c. Improper Government Setups[*]d. Red Tapism[*]e. Soaring Unemployment[*]f. Lack of Education[/LIST][B]4. Factors Boosting Terrorism[/B][LIST][*]a. Anti-Terrorism Campaigns[*]b. Drone Attacks[*]c. Negligence of Government[*]d. Assistance from NATO and its Allies[/LIST][B]5. Impact Of Terrorism On Pakistan’s Economy[/B][LIST][*]a. Decline in Foreign Investments[*]b. Internal Displaced People (IDP)[*]c. Increase in Unemployment[*]d. Stock exchange Suffered Decline[*]e. Rise in Smuggling[/LIST][B]6. Remedies[/B][LIST][*]a. Employment Opportunities[*]b. Sheer Accountability[*]c. Prompt Justice[*]d. Negotiations Forum[*]e. Proper Government Setup[/LIST][B]7. Conclusion[/B]

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Terrorism is a curse. Since the start of Anti-terror campaigns, an overall sense of uncertainty has prevailed in the country and it is at its peak in NWFP and FATA. It has conmtributed to capital decline in economic activities by making foreign investors jittery.

It has emerged in different countries for different reasons to accomplish, but he cases behind their inception were identical such as poverty, unemployment, injustice, corruption etc But still the questions arises that What are the factors responsible for boosting terrorism? What are the impacts of terrorism on Pakistan’s economy? And What remedies should be opted to axe the roots of terrorism?, that is what varies from country to country.

Pakistan have to take effective steps to expunge the terrorism by ensuring justice, promoting education, rising employment opportunities and development of channel of communication. It has become necessary for Pakistan to take prompt actions and adopt strategies to save the future of Pakistan.

Quaid-e-Azam said, “ Pakistan is came into being to remain forever”

[B][COLOR=seagreen]What is Terrorism?[/COLOR][/B]

Terrorism is a art of demanding at own prescribed rules from the any government or authority. However, it is believed that so far not any single definition is came into light through majority consensus. A person fighting for independence carries two labels for same actions such as He/she is a freedom fighter or a liberator and a terrorist, at a same time for different people.

Islam is not a origin of terrorism, it is mere a propaganda by the western media. If we look back into the history, we found from 1941-1948, 249 terrorist acts are recorded which are committed by Jewish Organization notably “Stunt Gangs” followed by Ignor and Hegna. Similarly, In Germany – “Badar Hof Gang”, In Italy – “Red Brigade”, and in Pakistan – “Al-Qaeda” and “Tehrek-i-Taliban”.

Terrorism emerges in different regions of the world and used as atool by some elements to get accepted their demands. It is necessary to understand the causes behind terrorism in Pakistan to search panacea for it.

[B][COLOR=seagreen]Causes Of Terrorism[/COLOR][/B]

Pakistan as a developing countries faced serious problems since its inception and some of them sow their dragon teeth in the soil of Pakistan to give birth to terrorism, such as;

Growing poverty affects the whole nation to cause terrorism. Population of Pakistan is 168.23 million by 2009, out of this 35-50% of population lives below the poverty line. In rural areas people do not have to eat two times a day that encourages them to adopt illicit alternatives to meet their basic needs.

Corruption and injustice started rising since 1947 and did not stop, still rising above the maturity. Pakistan stays at 42nd position in the worlds providing justice and establishing sound departments. Injustice irks the society in scores to go for alternatives. On the other hand, Organization like Tehrik-i-Taliban (TTP) and Al-Qaeda offered prompt justice by imposing their written Islamic Shariah gained popularity and become cause of supporting terrorists.
Ineffective and Improper government institutes in FATA and NWFP fuel the fire to grab the nation under its lap. It is a same repeated mistake done by the government which became cause of separation of East Pakistan.

Government’s lengthy procedure and acts of receiving bribe delayed justice and government benefits to deliver to the masses in NWFP and FATA. According to the National Accounting Database Regulatory Authority (NADRA) more than 0.8 millions IDP’s were not having their Computerized National Identity Cards (CNIC) during registration process in IDP’s camps. It becomes cause of lacking trust in the government and Taliban emerges as a well wishers to gain the support of masses.

Unemployment and ineffective quota system does not meet both ends. Lack of employment encouraged Kalashinkov culture in affected areas and people divert their support from government to Taliban.

The major factor behind terrorism in Pakistan is declining standard of education and its implementation. Due to improper setup in rural areas, students were not benefited with education. In Pakistan there are only 51 universities mostly erected in urban areas. In NWFP and FATA there was no proper setup of primary education to develop base of education and negate the evil thinking of act of terrorism. Teachers were not paid due to corruption in departments and further education standard deteriorated. Government proved to fail by keeping balance between Islamic teachings and state education. Due to the presence of few elements in government or authorizes motivated the madressah without evaluation that becomes road towards terrorism.

Former president, Pervaiz Musharraf inked in his book “The line of fire” that,” The period of Zia and Soviet invasion in Afghanistan was the inception of Taliban in Pakistan”.

Pakistan has given a birth to a threat for herself and it I left at large in past to strengthen its roots. Pakistan has to realize the factors which are motivating it and have to take prompt actions to uproot the terrorism from Pakistan.

[COLOR=seagreen][B]Factors Boosting Terrorism[/B][/COLOR]

After launching operations, “Rah-i-Rast” and “Rah-i-Nijad” in Swat and Waziristan respectively, the circle of the targettings areas of terrorism enlarged and lap over every city of Pakistan. In Pakistan 850 lives are lost which includes civilians, army and police officers. Suicide bombings and terrorists attacks become daily news breaking of the media. According to ISPR, in 2009 approximately 433 soilders are martyred and more than 8000 terrorists are put to death. But this will not end the terrorism, every death of individual terrorists affects three persons of his family to take revenge in the dress of terrorists. It is a zombie infection and have to tackle with care.
Drone attacks not only hurts the feelings of Pakistan’s society but also Amnesty International and United Nations are condemning these acts against terrorism.

According to Pakistan analyst, Zahid Hamid, He said,” Drone attacks are not more than other affected people to challenge, touch me if you can”.

It is noted that drone eliminated Taliban leaders like Baituallah Mehsud bit it also become cause of civilian casulities in Khudsan air strike and similar miss appropriate attacks in different cities.

Furthermore, Government turned deaf ear to the hue and cry of affected people and never ponder to pay their loyalties, implement strategies, development of projects, build schools and provide employment to win their heart and soul. Due to government negligence and inception of Taliban since soviet invasion, Talibanism concept south its roots in FATA and NWFP. In addition, conspiracy behind 9/11 potrait Al-Qaeda as a Anti-America and its allies and tremendous change in foreign policy of Pakistan after 9/11 emerge Pakistan as a important ally of war against terrorism that becomes cause of terrorism in Pakistan to destabilize American ally by Al-Qaeda and its allies “Tehrik-i-Taliban”.

[COLOR=seagreen][B]Impact of Terrorism On Pakistan’s Economy[/B][/COLOR]

Terrorism has greatly affected the foreign investment in Pakistan. Foreign investment is decline to $ 910.20 Million from $1.4 Billion in Fy 08-09. Dye to decline in investment poverty and unemployment rises. Poverty have reached to 41.4% from 37.5% in 2008-09. Due to unstoppable terrorism acts in Pakistan world bank has blocked two lending key loans of worth $820 Million till the conditions ameliorate to the paradigm.

Similarly, Terrorism increases the expensive of the forces to meet their needs to fight against terrorism. Pakistan has received total disbursement of $11,998 Million from US under Coalition Support Fund (CSF), out of this amount $3,129 Million were economic related aid and security related aid amounted to $8,869 Million.

In addition, risk of the investors and more troops in Afghanistan deployment by US rise the rish of investors to invest in Pakistan that cause serious downfall of deposits of banking sector that shows deposits fell from Rs.3.77 Trillion to Rs3.17 trillion on September 2009.

In 2002, Karachi stock exchange (KSE) was awarded “The best performing stock market of the world for the year 2002”. Similarly, On December 2007, KSE closed at index of 14,127 points with capitalization of Rs.4.57 trillion. But after war declared by government within Pakistan dropped its index to 4,675 points with a market capitalization of Rs.1.58 trillion, a loss of over 65% from its capitalization in 2007.

Furthermore, terrorism also promoted smuggling in Pakistan, due to porous border between Pakistan and Afghanistan smuggling becomes the source of culprits and expedients for terrorists to wash their hands from it to meet their financial needs. According to US-Pak business council report (2009), Pakistan is prime victim of Afghanistan’s instability and due to which Pakistan economy has so far suffered directly or indirectly huge loss of $35 Billion.

It becomes necessary for the Pakistan to bottle the gene, before it becomes bigger tin size to unable to fit in it. Pakistan has to take remedies to put to end the loss that may hurt Pakistan severe.

[B][COLOR=seagreen]Remedies[/COLOR][/B]

Pakistan has to adopt the following remedies, such as;

First, Increase in unemployment in FATA and NWFP to provide opportunity to meet their basic needs. Current government of Pakistan have to fulfill the promise of Z.A.Bhutto of providing food,shelter and cloth to every citizen of Pakistan to swing the pendulum of hate to patriotism.

Second, Sheer accountability should be adopted to nip the corruption in the bud and update aude-memoire to trace embezzlement and irregularities at the spot.

Third, Justice should be equal for every citizen of Pakistan. Proper judiciary along with jirga should be developed in such regions to provide justice at every level from ever mode of selection.

Fourth, Negotiations forum should be permanently established for direct negotiation between people and government unlikely rely on written documents like in Sara Rogha talks with FATA tribes in 2005.

Fifth, Government should established different departments or institutions in that regions to provde them jobs opportunities, easy access to lodge their hue and cry and prompt deliverance of aid, school standard meetings with national paradigm, hospitals with every facilities and social clubs should be developed to build goodwill and trust between people and government.

[B][COLOR=seagreen]Conclusion[/COLOR][/B]

Terrorism is a great hurdle in our economic prosperity, political stability, geo-strategic sustainability and energy security. Development activities are halt due to affected areas such as NWFP and FATA. Rise of terrorism is self-generated threat of Pakistan due to its weak policies, corruption and political instability.

Pakistan has to delink every source that strengthen terrorism aim to destabilize and crippled the economy of Pakistan. Pakistan has already faced huge decline in investments, foreign exchange, trade and privatization. Terrorism has bound Pakistan to have pledges of aid from donor agencies and countries like US, UK, China etc even by having enormous resources to stand in the category of developed nations.

Pakistan has to uproot the plant of terrorism before this plant of causalities, bombings, and hatred sought its enough roots to become a tree of hell [COLOR=seagreen](Zaqum).[/COLOR]
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Regards,