Posted 2/13/2024, 2:28:50 AM
Pakistan Faces Economic Peril as Election Turmoil Clouds Reform Path
- Pakistan faces major economic challenges like balance of payments issues, slowing growth, and rising prices. Securing IMF funding is critical.
- Election results created uncertainty and political instability, impacting economic stability and reforms.
- Allegations of rigging have hurt the incoming government's credibility. Continued political insecurity expected.
- Ability of a "weak" coalition government to make difficult economic decisions in doubt.
- With a strong opposition, military-backed SIFC may drive economic policymaking, reducing policy uncertainty but causing friction.