‘War on terror’ has cost Pakistan more than $150bn in losses since 9/11, officials say

Afghan police personnel stand guard outside Pakistan's embassy, in Kabul on November 4, 2019. (AFP)
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Updated 12 September 2021
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‘War on terror’ has cost Pakistan more than $150bn in losses since 9/11, officials say

  • “Our country has suffered so much from the wars in Afghanistan,” he said. “More than 70,000 Pakistanis have been killed. While the US provided $20 billion in aid, losses to the Pakistani economy have exceeded $150 billion”

KARACHI: Pakistan officials say that the country has suffered more than $150 billion in economic losses in the past 20 years after allying with the US as a frontline state in the wake of the Sept. 11, 2001 attacks in New York and Washington.
According to a report released by Brown University earlier this month, the cost of the post-9/11 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 US had to pay about $2.31 trillion for its war in the two countries.
According to Pakistan’s parliament, the country lost more than $152 billion due to the prolonged conflict in Afghanistan that spanned about two decades.
However, 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, Pakistan’s Prime Minister Imran Khan said that 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 US 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.”

FASTFACT

The country incurred a cost of $126.79 billion due to the loss of physical infrastructure, foreign investment and industrial output.

Spokesperson for the Pakistani military’s media wing, Major General Babar Iftikhar, said in January this year that 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 heading in its economic survey up to 2017-18, but stopped recording the figure in more recent publications.
According to the Pakistan Economic Survey of 2017-18, the country 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 that the number of losses presented by various administrations and private organizations is 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 said.

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 said, “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 past two decades, even when the US and others praised Islamabad for its support during the conflict.

He said that the only state that tried to fill the void was China, which invested in mega infrastructure and power-generation projects.

Experts maintain that the country has suffered about 3 percent GDP loss annually in the past 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 a 2018 Twitter post, former US President Donald J. Trump maintained that Washington had given more than $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 that 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 vast security deficit and rampant suicide bombings, Pakistan has 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, that 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.”


Cargo ship carrying new vehicles to Mexico sinks in the North Pacific weeks after catching fire

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Cargo ship carrying new vehicles to Mexico sinks in the North Pacific weeks after catching fire

“There is no visible pollution,” said Petty Officer Cameron Snell, an Alaska-based US Coast Guard spokesperson
“Right now we also have vessels on scene to respond to any pollution”

ANCHORAGE, Alaska: A cargo ship that had been delivering new vehicles to Mexico sank in the North Pacific Ocean, weeks after crew members abandoned ship when they couldn’t extinguish an onboard fire that left the carrier dead in the water.

The Morning Midas sank Monday in international water off Alaska’s Aleutian Islands chain, the ship’s management company, London-based Zodiac Maritime, said in a statement.

“There is no visible pollution,” said Petty Officer Cameron Snell, an Alaska-based US Coast Guard spokesperson. “Right now we also have vessels on scene to respond to any pollution.”

Fire damage compounded by bad weather and water seepage caused the carrier to sink in waters about 16,404 feet (5,000 meters) deep and about 415 miles (770 kilometers) from land, the statement said.

The ship was loaded with about 3,000 new vehicles intended for a major Pacific port in Mexico. It was not immediately clear if any of the cars were removed before it sank, and Zodiac Maritime did not immediately respond to messages Tuesday.

A savage crew arrived days after the fire disabled the vehicle.

Two salvage tugs containing pollution control equipment will remain on scene to monitor for any signs of pollution or debris, the company said. The crew members of those two ships were not injured when the Morning Midas sank.

Zodiac Maritime said it is also sending another specialized pollution response vessel to the location as an added precaution.

The Coast Guard said it received a distress alert June 3 about a fire aboard the Morning Midas, which then was roughly 300 miles (490 kilometers) southwest of Adak Island.

There were 22 crew members onboard the Morning Midas. All evacuated to a lifeboat and were rescued by a nearby merchant marine vessel. There were no injuries.

Among the cars were about 70 fully electric and about 680 hybrid vehicles. A large plume of smoke was initially seen at the ship’s stern coming from the deck loaded with electric vehicles, the Coast Guard and Zodiac Maritime said at the time.

Adak is about 1,200 miles (1,930 kilometers) west of Anchorage, Alaska’s largest city.

The 600-foot (183-meter) Morning Midas was built in 2006 and sails under a Liberian flag. The car and truck carrier left Yantai, China, on May 26 en route to Mexico, according to the industry
site marinetraffic.com.

A Dutch safety board in a recent report called for improving emergency response on North Sea shipping routes after a deadly 2023 fire aboard a freighter that was carrying 3,000 automobiles, including nearly 500 electric vehicles, from Germany to Singapore.

One person was killed and others injured in the fire, which burned out of control for a week. That ship was eventually towed to a Netherlands port for salvage.

South Korea investigators seek to arrest former President Yoon

Updated 50 min 57 sec ago
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South Korea investigators seek to arrest former President Yoon

  • Yoon was formally stripped of office in April, after being impeached and suspended by lawmakers over his Dec. 3 attempt to subvert civilian rule, which saw armed soldiers deployed to parliament

SEOUL: South Korean prosecutors asked a court Tuesday for a new arrest warrant to detain ex-President Yoon Suk Yeol, after he refused a summons by investigators probing his failed martial law bid.

Yoon was formally stripped of office in April, after being impeached and suspended by lawmakers over his Dec. 3 attempt to subvert civilian rule, which saw armed soldiers deployed to parliament.

He is already standing trial on insurrection charges, personally attending court to defend himself against the allegations.

However, he has refused several summons issued by a special counsel formed to investigate the martial law declaration that parliament voted to launch earlier in the month.

“Today, the special counsel requested an arrest warrant for former president Yoon Suk Yeol on charges including obstruction of official duties,” the special counsel said in a statement.

“The arrest warrant was requested in order to conduct the suspect’s interrogation,” it said, adding that “he has clearly indicated his intention not to respond to future summons.”

Prosecutor Park Ji-young, a member of the special counsel, said in a news conference that Yoon was just “one of several suspects” that they had summoned to be questioned.


France’s Macron calls talks on New Caledonia future

Updated 24 June 2025
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France’s Macron calls talks on New Caledonia future

  • New Caledonian elected officials, as well as political, economic and civil society leaders would be invited to the discussions to start on July 2

PARIS: President Emmanuel Macron on Tuesday invited New Caledonia leaders to talks next week on the future of the French overseas territory, a year after deadly separatist violence in the Pacific archipelago.
New Caledonian elected officials, as well as political, economic and civil society leaders would be invited to the discussions to start on July 2, a source familiar with the matter said. It was not immediately clear where the meeting would be held.
The French president in an invitation letter obtained by AFP said discussions would last “as long as necessary” to address key issues “with all the seriousness they deserve.”
“Beyond major institutional topics, I would like for our discussions to touch on economic and societal matters,” Macron added.
Home to around 270,000 people and located nearly 17,000 kilometers (10,600 miles) from Paris, New Caledonia is one of several overseas territories that remain an integral part of France.
New Caledonia has been ruled from Paris since the 1800s, but many indigenous Kanaks still resent France’s power over their islands and want fuller autonomy or independence.
Unrest broke out in May 2024 after Paris planned to give voting rights to thousands of non-indigenous long-term residents, something Kanaks fear would leave them in a permanent minority, crushing their chances of winning independence.
The riots — the most violent since the 1980s — led to the death of 14 people and billions of dollars in damage.
The president’s decision to host talks alongside the Minister for Overseas Manuel Valls also comes after a French court freed independence leader Christian Tein in June.
Tein, who hails from the Kanak group, had been held in custody in eastern France since June 2024 over the rioting in the nickel-rich archipelago.
Investigating magistrates concluded there was no proof that Tein was preparing an armed uprising against the government, according to a source close to the case.
The last independence referendum in New Caledonia was held in 2021, and was boycotted by pro-independence groups over the impact of the Covid-19 pandemic on the Kanak population.
The referendum was the last of three since 2018, all of which rejected New Caledonian independence.
Since the 2021 referendum — which pro-independence campaigners had requested be rescheduled — the political situation in the archipelago has been in deadlock.
Valls led negotiations in May between pro-independence and anti-independence groups, but they did not “reach an agreement about the institutional future of the territory,” Macron said in the invitation letter.
The president in early June declared he wanted a “new project” for New Caledonia.


Major UK supermarket chain to stop sourcing Israeli products

Updated 24 June 2025
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Major UK supermarket chain to stop sourcing Israeli products

  • Co-op board committed to ‘upholding human rights and the rule of law to promote fair trading and peace’
  • Palestine Solidarity Campaign: ‘This is a seismic victory for the solidarity movement in this country’

LONDON: One of Britain’s largest supermarket chains will stop sourcing Israeli products following a sustained Boycott, Divestment and Sanctions campaign.

The Co-operative supermarket said the decision was made due to Israeli human rights abuses and violations of international law. It comes into effect this month.

In May, a motion at the Co-op annual general meeting calling for an end to trade with Israel received overwhelming support. The supermarket board’s decision covers 17 “countries of concern,” including Israel.

Co-op will now launch a phased approach to begin removing products sourced from the 17 countries.

The BDS campaign, led by the Palestine Solidarity Campaign, saw the Co-op board commit to a “sourcing policy aligned with established co-operative values, upholding human rights and the rule of law to promote fair trading and peace.”

The supermarket will now avoid sourcing products from countries where “there is consistent behavior which would constitute community-wide human rights abuses or violations of international law.”

Through the new policy, Co-op believes it “can make a difference directly or indirectly to those affected and would alleviate suffering.”

Israel is a major exporter of fruit and vegetables to the UK, and its products are widely stocked at British supermarkets, including as ingredients in larger items.

A number of Israeli farms operate facilities in the occupied West Bank, in settlements that are illegal under international law.

PSC hailed Co-op’s decision as a “major victory.” It follows the “Don’t Buy Apartheid” campaign that the organization conducted this year, urging a widespread boycott of Israeli products in British shops, restaurants and venues.

Ben Jamal, PSC director, said: “This is a seismic victory for the Palestinian solidarity movement in this country, which demands that the government, institutions and corporations end all economic, political and military support for the state of Israel, which is conducting a live streamed genocide in Gaza after decades of military occupation and imposing a system of apartheid on Palestinians.

“The Co-op, as befits its history, has shown great moral courage and ethical principle in deciding that it cannot ignore voices from the British public calling out Israel’s gross human rights abuses and violations of international law — and even more importantly, it cannot economically support that regime through doing business in Israel.

“This beacon of leadership must now be taken up by all other supermarket chains which continue to sell Israeli goods, despite knowing they are supporting its war crimes.”  


UK government says Chinese spying on the rise

Updated 24 June 2025
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UK government says Chinese spying on the rise

  • Prime Minister Keir Starmer commissioned an “audit” of Britain’s relations with Beijing
  • The report, published on Tuesday, recommended high-level engagement with China but also building “resilience” against threats

LONDON: Chinese spying and attempts by Beijing to undermine Britain’s democracy and economy have risen in recent years, the UK government said Tuesday in a report on the Asian giant.

Foreign minister David Lammy told parliament the Labour administration would invest £600 million ($818 million) in its intelligence services as a result of the findings.

Prime Minister Keir Starmer commissioned an “audit” of Britain’s relations with Beijing after he swept to power in landslide general election win last July.

The report, published on Tuesday, recommended high-level engagement with China for a “trade and investment relationship” but also building “resilience” against threats posed by Beijing.

“We understand that China is a sophisticated and persistent threat,” but “not engaging with China is therefore no choice at all,” Lammy told MPs.

“Like our closest allies, we will co-operate where we can and we will challenge where we must,” he said, vowing that meant “never compromising on our national security.”

Starmer has vowed to pursue a “consistent” relationship after the previous Conservative government first trumpeted a “golden era” of close diplomatic ties before relations became increasingly strained.

The British PM hopes Chinese investment can help him achieve his main mission of firing up Britain’s economy.

But differences over Russia’s war in Ukraine, Beijing’s treatment of Uyghurs and Hong Kong — including the imprisonment of media mogul Jimmy Lai — pose hurdles to repairing relations.

In a joint letter coordinated by Reporters Without Borders, 33 organizations around the globe wrote to Starmer on Tuesday asking him to meet Lai’s son Sebastian.

“As a British citizen facing an unthinkable ordeal, Sebastien Lai deserves to hear first-hand from the Prime Minister what the UK is doing to secure his father’s release,” said the letter, which was signed by groups including Amnesty International UK and Human Rights Foundation.

Espionage allegations have also blighted the relationship in recent years, including claims that a Chinese businessman used his links with Britain’s Prince Andrew to spy for the Communist Party.The report noted that “instances of China’s espionage, interference in our democracy and the undermining of our economic security have increased in recent years.”

“Our national security response will therefore continue to be threat-driven, bolstering our defenses and responding with strong counter-measures,” the government said.

Starmer’s administration is due to rule on whether to approve Beijing’s controversial plans to open the biggest embassy in Britain at a new London location.

Residents, rights groups and China hawks oppose the development, fearing it could be used for the surveillance and harassment of dissidents.