Pakistan Faces Taliban Recession

One month into an offensive designed to rid the South Waziristan region of the Taliban, Pakistan is greeting new costs of war as the growing conflict hurts the nation's economy and scares off investment from abroad. Some Taliban militants have settled in other regions of the country forcing companies, like a London-based oil group, to leave Pakistan. “Naturally, this violence is not good for the investment climate, but the government’s decision this year to tackle the Taliban is a good one for the long term,” said a Karachi-based asset manager. The effort has cost the military $8.5 billion a year and the number is rising, according to Pakistani officials.