‘Serious challenges await new government’
PHOTO: EXPRESS
As not a single party has gained a simple majority in the National Assembly in the general elections and there would be a coalition federal government, the All Pakistan Business Forum (APBF) has warned that the financial constraints and the economic challenges are awaiting the incoming government amidst highest record inflation and unemployment in the country.
APBF President Syed Maaz Mahmood said the new government would have to face mammoth economic challenges. The country is facing challenges like higher inflation and unemployment rates, ongoing IMF programmes and possible engagement for fresh programmes to improve the balance of payments situation, debt restructuring, framing new resource sharing formula between centre and provinces, National Finance Commission (NFC) and privatisation of loss-making state-owned entities. However, it would be a challenging task for the coalition government.
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He said the results of the current general elections are indicating the establishment of a coalition government at the federal level, which would have to deal with a plethora of economic issues including higher inflation and unemployment rates, dealing with IMF, debt restructuring and others.
APBF Chairman Ibrahim Qureshi said the stocks, a day before the general elections in Pakistan, closed on a higher note, boosted by a pre-election rally and hopes of an upgrade in the country’s credit rating, but trading volumes remained thin as investors stayed cautious.
Qureshi said the global ratings agency, the S&P has recently stated that a more stable political environment in Pakistan is likely an important precondition to repairing the government’s creditworthiness.
The rating agency stated that new policy moves to improve investor confidence and bring down inflation to move to the “B” rating category.
Published in The Express Tribune, February 14th 2024.