The Political Economy of Terrorisms: Economic Cost of War on Terror for Pakistan

Terrorism and its effect on contemporary society is one of the core and vital subjects of International Political Economy (IPE) during the last years. Despite the fact that this is not a new phenomenon, special attention has been given to this issue, specifically after the terrorist attacks of 9/11, 2001. The objective of this paper analyzes to what dimensions terrorism affects the global economy mainly the two predominant actors of the conflict i.e. Pakistan and the United States. For this purpose, this article will take a look at the financial cost of War for Pakistan and how Pakistan’s decision to become frontline State has affected its Economy, its effect on agriculture, manufacturing, tourism, FDI, increased defense costs The normative and qualitative methodology shows a significant disadvantage between terrorist activities and economic growth, social progress, and political development. The results shows that Pakistan has bear slow economic growth while facing terrorist activities more than US. In this last section, the paper suggests ways and means to satisfy people around the world not to go in the hands of fundamentals and terrorists.