Economic Terrorism & Its Impact on Pakistan

Presented By Asad Raja Hammad Raja Jawad Hassan Nayab Ali Raza Syed Sunain Haider Syed Muhammad Raza

History Of IMF
The International Monetary Fund (IMF) is an international organization that was created on July 22, 1944 at the Bretton Woods Conference and came into existence on December 27, 1945 when 29 countries signed the Articles of Agreement.

Post 9/11 US Funding In Pakistan

In 2001 Pakistan was emerging from a tough stabilization program with the IMF which in the process of reducing macroeconomic imbalances had, more or less, 'suffocated' the process of growth. Per capita income was stagnant and there been a substantial increase in unemployment and poverty. Foreign exchange resources were scarce and at the beginning of FY 2001-02, foreign reserves stood at $ 3,231 million, enough only to finance three months of imports of good and services. Participation in the war effort led to a substantial increase in the inflow of concessional assistance, especially in the form of grants from the USA. The economy went back, after a long time, on to the path of rapid growth from 2003-04 onwards, averaging a GDP growth rate almost of 7 percent.

Contribution of IMF
The financing from the IMF will help to ease the path of adjustment and will provide a strong signal of support to the international community. Of the $7.6 billion loan, $3.1 billion will be made available by the IMF immediately to strengthen the reserve position. And the regular monitoring of the economy by the IMF will show how the macroeconomic objectives set by the Government are being met and whether they need to be adjusted in the light of changing circumstances. From the early 2000s to mid-2007, Pakistan's macroeconomic performance was robust. During the period 2000/01-2004/05, when Pakistan successfully implemented two IMF-supported programs, real GDP growth averaged 5 percent a year with relative price stability. The improved macroeconomic performance enabled the country to reenter international capital markets in the mid-2000s. The macroeconomic situation, however, deteriorated significantly in 2007/08 and the first four months of 2008/09 on account of domestic and external factors. Adverse security developments, large exogenous price shocks (oil and food), and the recent global financial turmoil buffeted the economy.

What is Economic Terrorism?

It is carried out to undermine a country to mount defense or even exist.

Effects economic terrorism are massive and long lasting.

The 9/11 incident is one of the biggest act of economic terrorism.

The act by any group or state for the sole and illegal purpose of creating economic chaos and collapse as a means of destroying the attendant society. Is the most lethal weapon for any anti-social element.

Why Such Terrorism is Preferred by Terrorist?

To give massive damage to a country in a single attack. To break the military defense system. To spread fear among average citizen.

To cripple the economy of a country.

Economic Terrorism in Pakistan

Since 9/11, many countries have been subjected to economic terrorism. The incident of 9/11 greatly affected Pakistans defense and economic condition. Frequent suicide bombing is the main cause of spreading of economic terrorism in Pakistan.

Effects of Economic Terrorism in Pakistan

Economic terrorism is costing Pakistan both economical and human lives loss.
In 2009, Pakistans GDP rate remained 3%. The inflation in Pakistan is high i.e. 18.85%. Thousands of people have died due to suicide bombing.

Effects of Economic Terrorism in Pakistan

Pakistan is spending a lot of money in counterterrorist activities. On the name of War on Terror, Pakistan suffered loss of 2080 billion dollars. Pakistan cannot maintain its economy by itself and is now depending on foreign aids.
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Challenges faced
Lack of leadership political parties. Unawareness in citizens. Lack of trust in Anti-terrorist allies of Pakistan. Weak economic backbone Inefficient security. and weak

Conclusion
Economic terrorism should not be taken lightly. Economic terrorism is a very lethal weapon that can cripple a country. It is carried out by anti-social elements due to political, social or religious reasons. Pakistan is facing worst terrorism attacks. Such attacks are responsible for the loss of human lives and economic decline in our country. Increased tax on industries and domestic use of Electricity and Gas.

Recommendations
Government of Pakistan should focus on should focus on eliminating the potential threat of economic terrorism. Build awareness among the people. Import better technology to tackle terrorists. Build trust greater trust among the allies.

Recommendations
Pakistan should bring its 97 billion dollars from Swiss Bank Pakistan should concentrate on development especially on service sector We should spend lesser budgets on defense and resolve Kashmir Issue so that there are more funds On Macro level we should spend more budgets on education.

Recommendations
Every Pakistani should pay tax. There should be less corruption and red tapism. Avoid Brain Drain. Build awareness among the people.

References
Google Scholar Wikipedia IMF World Bank SBP IMF Reports Nation Newspaper Article Economic Cost by Dr. Hafiz A. Pasha Undercover Economist