Islamabad, Nov 15 (IANS) The Pakistani government must take concrete measures to tackle terrorism as it was "affecting economic activities and the investment climate", business leaders have said.

Zafar Iqbal Chaudhry, Lahore Chamber of Commerce and Industry (LCCI) president, during a meeting of the Punjab Chambers of Commerce and Industry Coordination Committee in the Pakistani city of Lahore, said poor law and order was the biggest challenge being faced by the country.

He urged provincial and federal governments to take concrete measures to tackle terrorism as it was affecting economic activities and the investment climate, The News reported Sunday.

He said it was very difficult to attract investment if investors were not protected. He expressed concern over the poor law and order situation, saying it had shaken the confidence of foreign investors.

LCCI vice president Faisal Iqbal Sheikh said energy shortage and frequent increase in prices of energy were making Pakistani goods expensive and uncompetitive.

Punjab chief minister's senior adviser Sardar Zulfiqar Ali Khosa said that the Punjab government was making an effort to improve law and order situation in the province.

Khosa said the government was trying to provide better security to education institutions.

Pakistan has been hit by a wave of terror attacks that have killed over 250 people. One of the worst attacks took place Oct 28 when a massive bomb killed over 115 people in a crowded market of Peshawar.

The Pakistani Army is battling the Taliban in the rugged terrain of South Waziristan. The Taliban has vowed to retaliate against the US drone strikes, one of which killed its chief Baitullah Mehsud in early August.