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Terrorism actually comes from the Latin Word
Fear
The Unlawful Use of Force Against Persons or
Property to Intimidate or Coerce a Government, the
Civilian Population, or Segment Thereof, in the
Furtherance of Political or Social
Objectives.(Source FBI)
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Is an unlawful act of violence
Intimidates governments or societies
Goal is to achieve political, religious or ideological
objectives
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Terrorism is different from regular crime because of
its strong political properties
The definition of terrorism can vary from people to
people due to the differences in standpoint One persons terrorist can be anothers fighter
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1990s: Pakistan Supports Taliban
2001: Pakistan Joins the War on Terror, PakistanisDon't
2002: More Counterterrorism ... and More Terrorism
2003: U.S. & Pakistan Cooperate, but Pakistan"Talibanization" Increases
2004-2005: U.S. Aborts Plan to Capture Al QaedaHeads
2006-2007: Pressures on Musharraf Rises as Pursuit ofTaliban Continues
2008: Musharraf Departs, Militants Become Focus ofU.S. "War on Terror"
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Industrial base
Agricultural base
Service base
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Agriculture constitutes the largest sector of our
economy. Majority of the population, directly or
indirectly, dependent on this sector. It contributes
about 24 percent of Gross Domestic Product (GDP)and accounts for half of employed labor force and is
the largest source of foreign exchange earnings.
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The manufacturing being the second largest sector
of the economy bears significant importance 18.4
percent contribution to GDP. Overall manufacturing
sector posted a negative growth rate of 3.3 percentduring the current fiscal year against the target of
6.1 percent and 4.9 percent of last year. However,
production in large scale manufacturing during
July-Mar 2011-12 witnessed a broad-based declineof 7.7 percent against the revised growth target of
negative 5.0 percent.
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The service being the largest sector of the economy
bears significant importance 52.77percent
contribution to GDP.
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Impact of this war is multidimensional e.g. it has
political, social, national security and most
importantly economical impact..
these dimensions are closely interlinked with eachother..
Failure at one front raises the probability of failure
on all fronts..
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Pakistans economy has faced with many challenges
such as:
1. Slowdown of economic growth
2. Decline in investment..
3. High inflation..
4. High level of fiscal and current account deficits..
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The main objective of Pakistan fiscal policy issustained economic growth in unison with declinedebt services, poverty alleviation, the creation of
job opportunities and investment in physical and
human infrastructure. It is unfortunate that fiscalspace available during the last seven years (2000-2012) was not used to provide support to structuralreform; instead, painful structural reforms were
delayed. The current government decrease the 60percent governmental expenses.
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The inflation rate in Pakistan was last reported at 10.8
percent in March of 2012. From 2003 until 2010, the average
inflation rate in Pakistan was 10.15 percent reaching an
historical high of 25.33 percent in August of 2008 and a
record low of 1.41 percent in July of 2003. Inflation raterefers to a general rise in prices measured against a standard
level of purchasing power. The most well known measures of
Inflation are the CPI which measures consumer prices, and
the GDP deflator, which measures inflation in the whole ofthe domestic economy.
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Pakistans GDP has been one of the main economic factors
that have been affected by the terrorism exposed to the
country. Consumers who were used to going out on a
regular basis and purchasing high volumes of merchandise
have been afraid to do in the recent years. This has caused alarge decrease in consumer spending, which in turn has had
a negative impact on the Pakistan economy. As the GDP
growth rate has gone down from 8.40% in 2004-05 to 5.80%
in 2007-08 and more recently it has reduced to 2.10% in2008-09 And from 2010-2012 GDP is 10.1%.
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Pakistan conducts most of its trade with the UnitedStates and the European Union and furthermore,according to sources, 50% of its exports are to thesetwo locations. However, due to terrorism threats onand from Pakistan, foreign governments havediscouraged its citizens to visit Pakistan. Several bigcompanies who have had interest in procurement oftextile (Pakistans largest export product) have takentheir business to neighboring countries. Exports aresaid to have gone down from $19.22 billion to $6.1billion dollars amidst the reduction of imports. Thetrade balance/deficit is -4.5(billion $) and one of thereasons for this is because of the public global imagethat has been portrayed of Pakistan.
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In the country where macroeconomic indicators are
plunging as a result of political turmoil and
terrorism, it is obvious that not only foreign
investors but local investors will be petrified aboutinvesting to get profit. As a result of this, the
Pakistan FDI has reduced by about 1.475 billion or
52.8% during its last fiscal year. Some of the
reasons that have been stated for this sharp declineare as follows: future uncertainty, poor law and
order, and power shortages.
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The exchange rate has gone up from 60.5(Rs/US$)
to 90.91(Rs/US$) which has a bad effect on the
economy.
According to recent surveys, it cost Rs340 billion onterrorism which has caused the economy more
than $35million in lost.
Pakistan tourism industry suffered a loss of 44
million dollars in the past year and has gone down
by 6% despite various campaigns.
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