Islamabad, Amid growing political instability following the recent elections, the Special Investment Facilitation Council (SIFC) has been highlighted as a pivotal institution for Pakistan’s economic resurgence. Brigadier (retd) Aslam Khan, Chairman of Pakistan Economy Watch (PEW), expressed on Wednesday that the SIFC represents the nation’s last hope for economic recovery in a time when political security seems elusive and legitimacy concerns escalate post-election.

According to Pakistan Economy Watch, the elections failed to establish political stability, instead fostering an environment of disagreement and instability. The aftermath saw the three major political parties each claiming victory and a majority in the National Assembly, though it quickly became apparent that none achieved a clear majority, leading to predictions of a fragile coalition government prone to inefficiency and public dissatisfaction.

Khan elaborated on the daunting challenges awaiting the new government, notably reviving an economy still in critical condition and tackling rampant inflation that has significantly increased the cost of living. Skepticism prevails over the new government’s ability to maintain economic stability, implement necessary tax reforms, or privatize state-owned enterprises as effectively as the caretaker government, which had made several tough decisions.

The expected political fragmentation post-elections is likely to undermine economic and governmental stability, complicating efforts to negotiate further assistance from the International Monetary Fund (IMF), essential for averting national bankruptcy. Khan argued that political leaders would likely prioritize power consolidation over economic stabilization, focusing on satisfying allies and countering opposition rather than implementing unpopular but necessary economic reforms.

In this context, Khan emphasized the critical role of the SIFC in spearheading essential structural changes, suggesting that it should be empowered to act decisively, independent of political and business elite preferences. Given the current political landscape, he argued that it is unrealistic to expect politicians to lead an economic revival, positioning the SIFC as a key player in guiding Pakistan out of its economic predicament.