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Effected Sectors

Though all Pakistan is affected by terrorism but still there are some major sectors
related to the tourism that are affected by terrorism. These includes:

Economic Sector
According to the World Economic Forum, Pakistan ranked 113 out of 130 countries
as a tourist destination. The low ranking is attributed to incidents of terrorism and
the lack of a tourism regulatory framework in Pakistan.
Research said that many motels in the countrys restive northwest were closed
down as tourists were banned from those areas and the staff had migrated to other
cities for work. Now most parts of Pakistans northern belt and KPK have fallen into
the terrorists grip.
The total economic impact of 9/11 is realistically immeasurable; however the world
travel and tourism council has estimated the decrease of the travel and tourism
demand worldwide to be 10%. This equates to the job loss of 8.8 million people
globally including airlines, hotels, tour operators, car rental and credit card
companies, creating 1.7% decreased of total GDP for the world economy.
Before 9/11, the number of tourist arrival to the Pakistan was 0.557 million and
0.50 million in 2000 and 2001 respectively. However this figure decreased to
0.498 million in 2002, which was after effect of attack on World Trade Centre.
During this period revenue receipts from tourism industry in Pakistan decreased
from 551 million to 533 million.
During the expansion period of 2003-2006, flow of tourism towards Pakistan
returned to its role of pacing employment growth by increase in flow of tourist
arrivals to 0.898 million by contributing 919 million to country foreign reserves in
2006; but no longer again it suffered a harsher loss after war on terror started in
2007 in Pakistan, which brought down the number of tourist arrivals to .82 million
in 2008. Due to this war on terror international tourists have diverted their way
towards different countries of the world.
Business Recorder also reports how Pakistan earns only "$250 million or just 0.02
percent of world's tourism industry that generates over $900 billion annually".
The war has spread to most parts of Pakistan and has affected the overall economy
adversely. The intensification of domestic security challenges has exacted an
extremely high cost on the economy, both in terms of direct costs of the fight
against extremism, as well as in terms of a knock on effect on investment inflows
and market confidence. A significant collateral impact has been borne by Pakistan in
terms of the squeezing of fiscal space for critical development and social sector
expenditures that has hampered growth prospects in foreseeable future. It is
difficult to assess the exact total cost of war on terrorism. But a rough estimate of
the direct and indirect cost incurred by Pakistan during the past 10 years (20012011) as calculated by the Ministry of Finance in its annual Economic Survey
of 2010-2011 amounts to almost $68 billion. The cost of war incurred losses to

Pakistan was in the range of $2.669 billion in fiscal year (2001-02), $2.749 billion in
2002-03, $2.932 billion in (2003-04), $3.410 billion in 2004-05, $4.670 billion in
2005-06, $4.670 billion in 2006-07, $6.940 billion in 2007-08, $9.180 billion in 200809, $13.560 billion in 2009-10 and $17.830 billion in 2010-11, totaling the cost of
war to $67.926 billion in the last 10 years.