Officials say ‘war on terror’ caused over $150 billion in losses for Pakistan since 9/11

In this file photo, a Pakistani soldier crouches as a Pakistani Army Mi-17 helicopter takes off on top of Kund mountain near Kotkai village in South Waziristan, Oct. 29, 2009. (REUTERS)
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Updated 11 September 2021
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Officials say ‘war on terror’ caused over $150 billion in losses for Pakistan since 9/11

  • Economists warn Pakistan may continue to incur huge financial losses in the absence of political and economic stability in Afghanistan
  • Analysts say conflict in Afghanistan led to missed opportunities while pointing out Pakistan did not get western investments in two decades

KARACHI: Pakistani officials say the country suffered over $150 billion in economic losses in the last 20 years after siding with the United States as a frontline state in the wake of the September 11, 2001, attacks in New York and Washington.
According to a report released by Brown University at the beginning of this month, the cost of the post-911 conflict exceeded $8 trillion for Washington and led to 929,000 deaths in conflict zones.
The report said that 423,000 people were killed in Afghanistan and Pakistan alone, adding that the United States had to pay about $2.31 trillion for its war in the two countries.
According to Pakistan’s parliament, the country’s lost over $152 billion due to the prolonged conflict in Afghanistan that spanned about two decades, though experts say the emerging situation in the war-torn country has thrown up a new set of challenges after the withdrawal of international forces.
“Pakistan has suffered around $152 billion in economic losses since the war on terror began 20 years ago,” Aliya Hamza Malik, parliamentary secretary for commerce and investment, told Arab News on Thursday without sharing further details.
In an opinion piece published by The Washington Post last June, Prime minister Imran Khan said the cost of war for his country had gone beyond $150 billion.
“Our country has suffered so much from the wars in Afghanistan,” he said. “More than 70,000 Pakistanis have been killed. While the United States provided $20 billion in aid, losses to the Pakistani economy have exceeded $150 billion.”
Painting a dismal picture of the situation in Pakistan since the beginning of the conflict, the prime minister said: “Tourism and investment dried up. After joining the US effort, Pakistan was targeted as a collaborator, leading to terrorism against our country from the Tehreek-e-Taliban Pakistan and other groups.”
The spokesperson of Pakistani military’s media wing, Major General Babar Iftikhar, said in January this year the economic losses of his country caused by the war on terror amounted to $126 billion.
Pakistan tried to officially quantify the cost of the war by mentioning it under a separate head in the Economic Survey until 2017-18, though it stopped recording the figure in its more recent publications.
According to the Pakistan Economic Survey of 2017-18, the country had incurred a cost of $126.79 billion due to the loss of physical infrastructure, foreign investment and industrial output along with monetary compensation paid to the victims of the conflict.
However, experts believe the number of losses presented by various administrations and private organizations are largely speculative.
“There is no real data as the loss is notional,” Husain Haqqani, a scholar at the US-based Hudson Institute and Pakistan’s former ambassador to Washington, told Arab News. “If ‘X’ had not happened, our economy would have made Y amount. Therefore, Y is the loss we suffered due to ‘X’ is a notional estimate.”
“There are also those who argue Pakistan benefited economically from 9/11: more aid, IMF financing without fulfilling conditions, NATO transit costs and fees,” Haqqani added.
However, Imtiaz Gul, chairman of the Center for Research and Security Studies, described the losses as “immeasurable.”
“The actual losses inflicted on Pakistan after 9/11 are immeasurable since it is not always possible to quantify the opportunities that were missed by the country each passing day,” he said.
“Pakistan was viewed as a bad guy,” he continued, “which kept investors and financers away from the country. Therefore, we can only compute the real loss by looking at the economic impact of the negative perception built over the years which refuses to die.”
Gul noted that Pakistan had not received any major investment from a western country in the last two decades even when the US and others praised Islamabad for its support during the conflict.
He added the only state that tried to fill that void was China that invested in mega infrastructure and power generation projects.
Experts maintain the country suffered about 3 percent of the GDP on an annual basis in the last two decades.
“We lost tens of thousands of lives, our infrastructure was destroyed and social fabric ruined,” Sajid Amin Javed, senior economist at the Sustainable Development Policy Institute, told Arab News. “Estimates show that Pakistan lost almost 3 percent of its GDP every year.”
However, US officials maintain Pakistan accrued several benefits by participating in the conflict. In one of his tweets in 2018, former American president Donald J Trump maintained that Washington had given over $33 billion to the country.
“The United States has foolishly given Pakistan more than 33 billion dollars in aid over the last 15 years, and they have given us nothing but lies & deceit, thinking of our leaders as fools,” he said on the social media platform.
The Pakistani prime minister acknowledged that his country had received $20 billion in his opinion piece, though he added that its losses far exceeded that number.
Security analysts say much of the money flowing into Pakistan were reimbursements for services provided to the US under the coalition support fund.
“Nearly 80 percent of the money the US claimed to have provided to Pakistan came under the coalition support fund,” Gul said. “These were basically reimbursements made to the country.”
He added: “The US did not provide anything new to Pakistan but gave us used C130s, Cobra helicopters and a lot of AK47 rifles.”
Faced with a huge security deficit and rampant suicide bombings, Pakistan launched several clear-and-hold military operations in the tribal areas adjoining Afghanistan in recent years and carried out intelligence-based counterterrorism operations in its urban centers under the National Action Plan.
With the withdrawal of international forces from neighboring Afghanistan, Pakistani analysts seem to be cautiously optimistic about the future stability of their country and the region.
“I think geopolitically Pakistan may benefit from a relatively stable situation in Afghanistan that is likely to allow it to reach out to Kabul along with other countries like Russia and China to start some economic revival and rehabilitation plan,” Gul said.
Economists said, however, the country’s financial losses were far from over since there was still a lot of uncertainty related to the emerging situation in Afghanistan.
“The worrying part is that the costs of 9/11 are seemingly not over yet,” Javed said. “If factional fighting begins in Afghanistan, Pakistan may continue to incur significant economic cost in the coming days.”
 


Pakistan proposes anti-terror law changes, drawing criticism from lawyers, rights activists

Updated 02 November 2024
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Pakistan proposes anti-terror law changes, drawing criticism from lawyers, rights activists

  • Draft law seeks to empower state agencies to detain suspects for three months for involvement in militancy
  • Experts say the law can be used against dissidents and activists as it provides blanket detention powers

ISLAMABAD: The government has proposed amendments to Pakistan’s anti-terrorism law to empower military and civilian armed forces by granting them the authority to detain suspects for up to three months, with lawyers and rights activists on Saturday calling the changes a violation of basic constitutional and human rights.
Interior Minister Mohsin Naqvi introduced the bill in the National Assembly a day earlier, saying it would bolster national security and prevent potential militant attacks. The draft law requires separate approval by both houses of parliament with a simple majority to become law.
The Anti-Terrorism Act of 1997 was last amended in 2014, allowing the government and authorized civilian armed forces to conduct preventive detention of individuals suspected of involvement in militant activities.
The provision gave the law enforcement agencies the power to deal with security threats by detaining suspects for up to three months, enabling thorough investigations to prevent potential terrorist acts. However, the amendment included a sunset clause, limiting its validity to two years, which expired in 2016.
“The current security situation requires a robust response that goes beyond the existing legal framework,” the draft law said, adding that erstwhile amendments of the anti-terrorism act were required to be “reinserted to empower the government, armed forces, and civil armed forces with the necessary authority to detain individuals who pose a significant threat to national security.”
“This provision would allow for the preventive detention of suspects based on credible information or reasonable suspicion, thereby disrupting terrorist plots before they can be executed,” the bill added.
The draft law said it would provide law enforcement agencies with the legal backing to conduct “more effective operations against terrorism.”
“It would facilitate the use of Joint Interrogation Teams (JITS), composed of members from various law enforcement and intelligence agencies to conduct comprehensive inquiries and gather actionable intelligence,” the draft law said.
Legal experts and human rights activists said the proposed law would likely be used against human rights activists and dissidents, as it grants blanket powers to the armed forces and intelligence agencies.
“If this bill is passed, then it will be obviously in clear violation of the basic human rights provided in the constitution,” Barrister Ahmad Pansota told Arab News. “The security forces cannot keep any suspect in an inordinate detention just on the pretext of the national security.”
Pansota noted that the Pakistani constitution offers protection against prolonged detention by law enforcement agencies.
“This law could be struck down by the courts if challenged,” he said.
Ammar Ali Jan, a human rights activist, agreed with him, saying the draft law was designed to bypass objections raised about enforced disappearances of activists and dissidents.
“This law is aimed to provide legal cover to all illegal activities of the law enforcement agencies,” he said.
However, former attorney-general of Pakistan, Ashtar Ausaf, argued that the country faces a “unique kind of terrorism threat,” with militants targeting civilians, polio workers, and law enforcement agencies, and said the law would help combat militancy.
“It is the right of parliament to legislate on any matter of public importance, including protecting the life and property of citizens,” he told Arab News. “The draft law will be thoroughly debated in parliament before a vote, and parliamentarians will naturally consider all constitutional rights of citizens.”


Pakistan’s largest independent power producer expands into lithium mining, battery manufacturing

Updated 02 November 2024
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Pakistan’s largest independent power producer expands into lithium mining, battery manufacturing

  • Hub Power Company’s subsidiary signed a collaboration agreement with Chinese EV giant BYD this year
  • Its lithium exploration is expected to further boost the manufacturing potential of Pakistan’s auto industry

ISLAMABAD: Pakistan’s largest independent power producer is set to enter lithium mining, battery manufacturing and electric vehicle (EV) production under Pakistan’s Special Investment Facilitation Council (SIFC), according to state media on Saturday.
Established in 1991, Hub Power Company (Hubco) has an installed generation capacity exceeding 3,500 megawatts and plans to diversify in other areas.
The planned initiatives, facilitated by the SIFC, a hybrid civil-military body established last year to assist foreign investors, aim to meet the country’s growing demand for batteries and electric vehicles.
A lithium exploration and battery production project is expected to reach completion in 12 to 18 months, meeting the rising demand for rechargeable batteries used in mobile phones, laptops and automobiles.
“Hub Power Company Limited’s exploration of lithium in Pakistan will further increase the manufacturing potential in the country’s auto industry,” Radio Pakistan reported.
“Work on establishing a manufacturing plant to produce electric vehicles in Pakistan is already underway, which will manufacture fifty thousand electric vehicles annually,” it added.
Earlier this year in June, Hubco’s subsidiary Mega Motor Company signed a collaboration agreement with Chinese EV giant BYD Auto Industry to assemble EVs in Pakistan.
Plans for the EV plant, with a projected annual production of 50,000 vehicles, include 30 to 40 percent allocated for export to markets in Australia and Africa.
HUBCO operates a diverse portfolio of power plants, including oil-fired, coal-based and hydropower facilities, and is also involved in coal mining.
Its new initiatives are expected to strengthen its market position, create employment opportunities and boost domestic capacity for battery production for electronic devices.


Pakistan’s northwestern province offers over Rs10 billion to keep national airline under state control

Updated 02 November 2024
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Pakistan’s northwestern province offers over Rs10 billion to keep national airline under state control

  • Khyber Pakhtunkhwa says PIA is a critical state asset that should remain ‘within the national fold’
  • Offer comes after PIA’s privatization process led to a low bid that fell far short of the minimum price

KARACHI: Pakistan’s Khyber Pakhtunkhwa (KP) province has formally offered to exceed the highest bid in the sale of Pakistan International Airlines (PIA), saying the national flag carrier should remain under government control to preserve its status, according to a letter from provincial authorities to federal officials that emerged on Saturday.
KP made the offer just a day after the government held the privatization process, receiving the sole bid of Rs10 billion ($36 million) from Blue World City, a real estate development firm, which fell far short of the minimum price of Rs85 billion ($305 million).
Critics, including PIA union representatives and independent analysts, called the low bid an “embarrassment” for the government, with airline employees suggesting Pakistani authorities should expand PIA’s fleet to restore its operational viability.
“On behalf of the Chief Minister ... and the people of KP, we would like to express our earnest interest in participating in the bidding process for the sale of Pakistan International Airlines (PIA),” read the letter from the provincial Board of Investment and Trade. “This letter serves as our formal intent to position the Government of KP as a competitive bidder in this strategic acquisition.”
The letter, which was addressed to Pakistan’s Privatization Minister Abdul Aleem Khan on Friday, emphasized PIA’s importance as “a critical asset that symbolizes our national identity and pride,” adding that the province wished to keep it “within the national fold.”
“The Chief Minister [Ali Amin Gandapur] has directed us to actively pursue this acquisition to ensure the airline remains under the control of the Government of Pakistan rather than transferring to any private or foreign-backed entity,” it continued.
“In line with this commitment, we are prepared to offer a bid that will surpass the current highest offer of PKR 10 Billion by Blue World Consortium, ensuring a strong and competitive position within this process,” it added.
Pakistan decided to move ahead with PIA’s privatization under terms agreed with the International Monetary Fund (IMF) for a 37-month, $7 billion bailout approved in September, aiming to divest over 51 percent of its stake in the financially struggling national carrier.
The KP administration requested a prompt meeting with federal officials to present its detailed proposal and outline its vision for PIA, affirming its readiness to proceed quickly to secure the acquisition.
Despite KP’s proposed plan, provincial ownership of PIA may not align with the privatization’s intended purpose under the IMF agreement, which is to reduce financial burdens associated with state-owned enterprises.


‘He never found peace’: Former Guantanamo detainee from Pakistan dies after years of suffering

Updated 02 November 2024
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‘He never found peace’: Former Guantanamo detainee from Pakistan dies after years of suffering

  • Abdul Rahim Ghulam Rabban died after prolonged illness due to a lack of proper medical care
  • Arrested in Karachi in 2002, he spent about two decades at the US prison without ever being charged

KARACHI: A former Guantanamo Bay prisoner from Karachi, who spent about two decades at the detention center without being charged before his return home in February last year, died in his native city on Friday, his brother and a fellow former detainee confirmed on Saturday.
Abdul Rahim Ghulam Rabbani’s death was attributed by his brother, Muhammad Ahmed Ghulam Rabbani, to inadequate medical care during a prolonged illness, which he said extended their suffering even after their transfer to Pakistan.
According to Reprieve, a global legal action non-profit, the brothers endured 545 days of torture in CIA custody following their arrest in Karachi on September 10, 2002, before being transferred to Guantanamo in 2004.
“We spent over twenty arduous years together in Guantanamo,” said the late former Guantanamo detainee’s brother. “On Friday at 2 AM, he passed away in my arms.”
Guantanamo Bay, a US military detention facility established in Cuba to detain suspects in the “War on Terror” after the September 11, 2001, attacks, became notorious for holding prisoners without trials, drawing widespread condemnation.
International human rights groups criticized the facility for violating detainees’ rights to due process, with allegations of extreme interrogation techniques amounting to torture, including waterboarding and prolonged isolation.
Rabbani recalled that both brothers briefly felt relief when they learned they would be handed over to Pakistani authorities, believing their ordeal would end.
“But our suffering continued,” he said. “Over 19 months, we still lack identity cards. My brother had been ill for a long time, but we couldn’t access proper medical care without an ID.”
He added that his brother fell “seriously ill” more than 20 times, attributing it to injections administered upon their arrival at Guantanamo and the extensive torture they endured.
“He suffered such violence that his hand was broken, his leg was broken and his private parts were damaged, ruining his family life,” Rabbani said. “When he passed away, we even faced difficulties in burying him because an ID card was required.”
Overwhelmed by their circumstances, he questioned why they were returned to Pakistan when their own government was unwilling to issue identity documents.
“My dearest brother has left me behind,” he added. “He did not have peace for even a single day after the arrest. What was our crime? What is our crime?”
In the early 2000s, Pakistan apprehended and transferred hundreds of individuals to US custody, claiming they were linked to Al Qaeda. In his 2006 memoir, In the Line of Fire, then-President Pervez Musharraf said his government had received substantial CIA payments for these handovers.
Subsequent analyzes revealed that many of these detainees, mistakenly identified as militants, were likely innocent.
Lahore-based analyst Majid Nizami called the Rabbani brothers’ arrest “a case of illegal abduction by state agencies of Pakistan,” later justified as “mistaken identity.”
“It’s unclear whether this was intentional by Pakistani agencies or a severe negligence,” he told Arab News. “It has not yet been determined who was responsible, and no one seems interested in addressing the issue.”
According to some estimates, Pakistani authorities handed over nearly 370 people to the US after 9/11. The two brothers were among those transferred to American custody for $5,000 each.


Pakistan’s Khyber Pakhtunkhwa to establish power transmission line costing $28 million

Updated 02 November 2024
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Pakistan’s Khyber Pakhtunkhwa to establish power transmission line costing $28 million

  • Official says this will be the first time ever that a province will lay a transmission line on its own
  • In the first phase, a 40-kilometer section of the line will be built from Matiltan to Madyan in Swat

ISLAMABAD: The government in Pakistan’s northwestern Khyber Pakhtunkhwa province has signed an agreement with a private firm to establish a power transmission line in the province, an official said on Saturday.
The power transmission line will be established in one and a half year with a cost of Rs8 billion ($28.8 million), according to Muhammad Ali Saif, KP chief minister’s adviser on information.
In the first phase, a 40-kilometer section of the line will be built from Matiltan to Madyan in Swat to supply power to local industries and national grid.
“Industries will be provided very cheap electricity through the transmission line,” Saif said in a statement. “The completion of its first phase generate Rs7 billion for the province.”
Pakistan has enough installed capacity to meet its demand for electricity, but the South Asian country lacks adequate resources and cannot afford to invest in new infrastructure and power lines, which often result in transmission losses. 
In January 2023, the country suffered a nationwide blackout due to a frequency failure in the national grid, which happened because of a major mismatch between demand and supply. It was the second nationwide shutdown in three months. 
In November last year, the Asian Development Bank (ADB) approved $250 million loan for Pakistan to help the South Asian country deliver reliable electricity by expanding and improving its power transmission network in the Khyber Pakhtunkhwa and Punjab provinces.