Economic cost of protests: A whopping Rs547 billion, AGP informs Supreme Court

SC told protests caused exchange rate depreciation of 4.3%, debt burden of Rs228b and stock value decline worth Rs319b

ISLAMABAD: As the political crisis drags into its third week, the federal government has revealed that the protests in Islamabad have led to losses worth Rs547 billion to the national exchequer.

Attorney General of Pakistan (AGP) Salman Aslam Butt, while submitting the government’s reply in the Supreme Court, said the protests have so far caused immense damage to the social, economic and political output of Pakistan, including an exchange rate depreciation of 4.3%, debt burden of Rs228 billion and stock value decline worth Rs319 billion.

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Overall loss to economy
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On Wednesday, the Supreme Court had asked the AGP to submit details of financial losses as well as losses to public property, killings, and expenditure on law and order in lieu of the protests in Islamabad.

“Unfortunately, the international image of Pakistan has been considerably shattered. Many incoming and outgoing visits of heads of states, delegations and other important events have either been cancelled or indefinitely postponed. Furthermore, the loss of life and destruction of property (public and private) has been overwhelming”, the government said in its reply.

The attorney general went on to add that political uncertainly in the country has had an adverse affect on the financial markets of Pakistan, which has led to rupee depreciation and a decline in the foreign exchange reserves of the country. “The foreign exchange reserves standing at $13.9 billion on August 15, 2014 have come down to $13.53 million on September 2, 1014”

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Decline in forex reserves
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Further, the reply said, stock markets have also witnessed a decrease in their index’s with stock value declining to about Rs319 billion.

“As a result of the current blockade of the Constitution Avenue, only an average 40% to 45% of employees working in FBR have not been able to attend their office since August 16”

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Law enforcement expenditure
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The reply also revealed that the total amount spent on law enforcement, excluding regular allocation, stood at Rs357.6 million, including an additional demand of Rs130.616 million received on August 29. Further, the loss reported by the Trader Association Islamabad stood at Rs10 billion.

According to estimates of the Capital Development Authority (CDA), damage to state property has led to losses worth Rs5 million as per an initial assessment.

In addition, the government said, the attack on PTV headquarters led to equipment being damaged or stolen. The government said that to date, a police vehicle has been set ablaze and 17 other vehicles have been damaged.

The government also revealed that 717 persons have been injured, including 202 police personnel, and three persons have lost their lives so far.  Further, the government has deputed 26,973 police and other law enforcement agencies, rangers and army officials to ensure the safety and security of  citizens.

“The party workers of PTI and PAT have created state within state by having taken the law into their hands,” said the government in its reply, while expressing apprehension that protests have rendered the country vulnerable to terrorist attacks and other security-related risks.

Attaching copies of speeches by Imran and Qadri, the reply said both leaders have threatened to shut down Pakistan, overthrow the government, lock down the government machinery and openly revolt against the government.

The government also contended that both parties violated their No Objection Certificate (NOC) by entering the Red Zone, making their protests illegal and unlawful.  Further, a total of 13 FIRs have been registered so far by the government against individuals who have created threatened the law and order situation in the country, the reply said. The bench will take up the case tomorrow (Friday).