Terrorism means harassment, destruction, suicide attack and killing of innocent people on no reasons. Terrorism disturbs the inhabitants, damage infrastructure, cause a decline in economic well-being, bring political instability, and break the social fabric of the society. Terrorism affects the economic growth of a country by lowering foreign direct investment, capital formation, investment and increases risk perception. When we look around the world from a historical perspective, we see that war affected countries, whether in Africa, Asia, Europe or any other region have suffered alike. More terrorist attacks at private citizens, property, transport and airports are related to lower capital formation and low GDP per capita growth. The International Monetary Fund estimated the direct costs of September 11, 2001 attacks on US as equal to $21.4 billion while, Navarro and Spencer found that the loss of capital stock was $50 billion to $53 billion. Pakistan has been fighting the war on terror since September 2001. So far the war has cost the country the lives of more than 35,000 citizens and 3,500 security personnel, besides destruction of infrastructure and $67.93 billion direct economic loss. Pakistan is facing terrorist attacks including suicide bombing which has deteriorated law and order situation and the foreign investors are reluctant to invest in Pakistan. The military operations against the terrorists displaced millions of people from Swat district of KPK. Terrorist activities also shattered Pakistan image in the international community. Terrorism has threatened the peace, stability and well-being of Pakistani society.
Furqan Khattak
Kohat
