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Abstract
More than the year’s sustained state of rebellion in Pakistan is causing compensation to the country in all the aspects as well as economic aspect. what's more the non quantifiable loss to humans, other main economic costs of the terrorism include poverty, capital flight, destruction of infrastructure, reduction in FDI and exports, low public revenues and entertainment of the development expenditure to the expenditure on law and order maintenance and so forth. All these economic costs have significant impact on economic growth, e.g. one of the major contributors is the recent violence and terrorist activities in Pakistan which caused the overall GDP growth in 2010 to fell to 1.6 percent.