General

Pakistan Faces Political and Economic Uncertainty After Election Results

Islamabad, In the aftermath of the recent elections, no single party has secured a full mandate, leading to concerns over Pakistan’s political and economic stability. Dr. Murtaza Mughal, President of Pakistan Economy Watch, highlighted the challenges of forming a government under such circumstances and criticized the interference of Western nations in Pakistan’s electoral process.

According to Pakistan Economy Watch, Dr. Mughal expressed disappointment on Sunday that the elections failed to produce a clear winner, necessitating coalition government formations. He noted that the absence of a majority would compel the leading party to seek support from other parties and independents, likely resulting in a cumbersome administration burdened by an oversized cabinet. Dr. Mughal warned that such a government would struggle to allocate sufficient time and resources towards economic strengthening and public relief, exacerbating the cost of living crisis for the populace.

Furthermore, Dr. Mughal accused Western countries of expressing undue concern over Pakistan’s elections while overlooking other global issues, such as the situation in Palestine. He anticipated that the necessity for coalition formations, particularly between the PML-N and PPP despite their ideological differences, would hinder effective governance and economic reforms. The coalition, As per Dr. Mughal, faces the daunting task of implementing tough economic decisions and initiating a new IMF program amid ideological disparities over tax reforms, revenue generation, and the privatization of state-owned enterprises.

The establishment of coalition governments in pivotal regions like Punjab and Balochistan, as Dr. Mughal pointed out, is almost certain and could impede development efforts. He urged political leaders to expedite government formation to prevent further economic decline, emphasizing the critical nature of the choices facing the incoming coalition, especially regarding privatization strategies initiated by the caretaker government.

Dr. Mughal concluded by expressing concern over the stock market’s response to the prevailing uncertainty, cautioning that the coalition government’s inability to fulfill electoral promises could deepen the nation’s economic woes.