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Baner Club > Blog > Election > Will Pakistan’s leaders resolve the issue or make it worse?
ElectionPolitics

Will Pakistan’s leaders resolve the issue or make it worse?

With political parties struggling to provide Pakistan with a stable, predictable government, the economy is the primary casualty

Last updated: 2024/02/14 at 2:37 PM
Published February 14, 2024
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ISLAMABAD: With the ballots counted, Pakistanis have made their voices heard. If we use the popular vote as a measure, PTI appears to be slightly less popular today than it was in 2018, although both PML-N and PPP have witnessed a 10% growth in popularity since then.

This is the 12th election in the past half-century. Serious charges of rigging continue, reflecting the patterns witnessed in the previous eleven elections. There’s nothing new there. Election tribunals will hear and decide issues about election conduct, including charges of rigging, just as they did in the previous 11 elections. There’s nothing new there either. What Pakistan sorely needs is a stable government.

With political parties battling to provide Pakistan with a stable, predictable administration, the economy is the biggest victim. Yes, determining the exact cost of current political uncertainty is tough, but it is clear that there are demonstrable effects on the economy.

Here are three direct and immediate economic losses: The Pakistan Stock Exchange (PSX) has lost approximately $2 billion. Pakistan’s overseas dollar bond has dropped the most in seven months. And this uncertainty will undoubtedly deter potential foreign investors, resulting in wasted possibilities for economic growth and employment creation.

In addition to the obvious and immediate economic losses, there will be at least three indirect economic consequences: One-heightened uncertainty will have a negative influence on consumer confidence, resulting in decreased consumer expenditure, which will affect various economic sectors, including retail. Two-businesses will postpone crucial investments due to uncertain future economic conditions, which is bound to depress overall growth. Three-delayed decision-making and disruptions in economic activity are bound to contribute to inflationary pressures.

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