Abstract
Development of human capital, as part of public policy, is critical for sustainable socio-economic development of a country. This study analyzed the factors that influenced the household behaviour of spending on human resources in terrorism affected region of district Swat. The uniqueness of the current study is to study human capital behaviour in the study area. The econometric technique (OLS) was applied to analyze the data. The study found that there are direct and indirect relationship exists among the targeted variables. It was found that health and education status is negatively affected by the incidence of terrorism. The education system drastically affected and the enrolment rate at the primary, secondary and post-secondary levels have exceptionally declined because of the aftermath of terrorism episode between 2002 and 2016. Health, education facilities and infrastructure are deteriorating posing a threat to long term development. The effective policies of the Government (investment in human capital) and eradicating terrorism (military actions) is a demanding subject of matter for the sake of development in the area.
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