Impact of Terrorism on Pakistan Economy

The Effects of Terrorism & Tourism on the Economy of Pakistan Pakistan is one of the poorest countries on the planet, ranking 171st in the world on the GDP per capita measure, agree to the CIAs World Factbook. Terrorism is a big detriment to Pakistans development, including its tourism industry. Terror attacks atomic number 18 common in the country, and even Pakistans former Prime Minister Benazir Bhutto was killed as a result of a suicide attack in 2007. 1. The Effect on Tourism oTourism is underdeveloped in Pakistan.Most of the people who visit the country are people of Pakistani descent who make up the Pakistani diaspora in the U. S. and other countries. Accordingly, the effect of tourism on the economy of Pakistan is negligible. That said, if the security system situation improves, Pakistan could buzz off a fairly popular tourist destination thanks to its unique culture and geography (Pakistan boasts a beautiful mountain terrain of the Himalayas, among other attractions). Ter rorism Hinders transaction oAccording to a presentation of the Lahore School of Economics, terrorism has a negative impact on the national economy of Pakistan.The threat of terrorism not only diverts resources to security spending, driving up costs for businesses, but also creates instability about business prospects in the country. Businesses find it difficult to obtain bank loans and get into long contractual obligations. o Insecurity Hampers Investment oInsecurity that results from terrorism hampers the Foreign Direct Investment that goes into Pakistan. Investors fret that terrorism may lead to Islamic extremists taking power, destabilizing loving and economic structures in the country.