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 famous query from ex-US President Bush: “You are either with us or against us?” And the historical warning by US Assistant Secretary of State Richard Armitage to Lt Gen Mahmood Ahmed, then DG ISI, to “be prepared to be bombed. Be prepared to go back to the Stone Age.” When the US-led forces attacked Afghanistan in October 2001, Pakistan snapped its ties with the Taliban and supported the foreign forces. Since then, Pakistan has suffered tremendous losses, both directly in the shape of valuable lives, property and the cost of waging the war and indirectly through loss of revenue, investment and business. Since the start of the anti-terror campaign, an overall sense of uncertainty has prevailed in the country, especially in Khyber Pakhtunkhwa (KP). It has contributed to capital flight and slowed down economic activities making foreign investors jittery. The Foreign Direct Investment (FDI) indeed has been adversely affected by the ongoing anti-terrorism campaign mainly in FATA and other areas of KP. Pakistan’s participation in the international campaign has led to an excessive increase in the country’s credit risk, due to which the World Bank has lowered its credit rating. In 2008 and 2009, Pakistan’s industrial base saw one-third...
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