Energy shortages, poor law & order situation, and the difficult financial position of the government due to spending on the war against terrorism and IDPs resulted in a real GDP growth that is substantially lower than the long-term average in the preceding four years. The impact of these domestic factors was compounded by the declining FDI due to domestic law and order. The poor performance of the economy during 2010-11 was further exacerbated by the floods in the country.