The economy, last year''s Survey noted, was subjected to enormous direct and indirect costs on account of the war on terror - estimated at $2.669 billion in 2001-02 to $13.6 billion by 2009-10 and was projected to rise to $17.8 billion in 2010-11.
The Survey 2010-11 had also noted that the cumulative direct and indirect cost of the war on terror for the last 10 years incurred by Pakistan amounted to $67.93 billion or Rs 5,037 billion. According to Planning Commission officials, it was decided that the addition of cost of war on terror chapter was not in the national interest because it was detrimental to the inflow of investment. The officials also attributed the deterioration in the law and order situation as another reason for the exclusion of the chapter in Economic Survey for 2011-12.
The sources said that investment was vital for the revival of the country''s economy, adding that it declined considerably during the outgoing fiscal year. The perception among the economic team was that inclusion of the chapter on cost of war on terror might not be a good omen for investment.
According to Economic Survey-2010-11, Pakistan''s investment-to-GDP ratio nose-dived from 22.5 percent in 2006-07 to 13.4 percent in 2010-11 with serious consequences for job creation. The security situation in the country would also be a key determinant for the future flow of the investment. "Pakistan''s economy needs an early end to this war," they agreed.
The officials said that investment was revised downward to 12.5 percent by the National Economic Council (NEC) for the current fiscal year from a budgetary projection of 13.8 percent and an increase in investment as percentage to GDP was critical to moving toward higher and sustainable growth.
In addition, last year''s Survey dedicated a chapter on war on terror and its impact on the economy. It noted that since 2006, the war has spread like a contagion into settled areas across the country, costing the lives of more than 35,000 citizens, 3,500 security personnel, destruction of infrastructure, internal migrations of millions of people from parts of north-western Pakistan. It also caused erosion of investment climate, nose-diving production and growing unemployment and above all, brought economic activity to a virtual standstill in many parts of the country.
The government also did not include a chapter on poverty statistics in the Economic Survey-2011-12 after it failed to complete a comprehensive survey in this regard. Finance Minister Dr Abdul Hafeez Shaikh, while responding to a query by a reporter on Thursday, directed the Deputy Chairman of the Planning Commission to immediately complete the poverty survey. Officials, on condition of anonymity, accused the government of deliberately slowing the survey because it had increased rapidly over the past three years and would not have reflected well on its claims.