Dr Murtaza Mughal, President of Pakistan Economy Watch, said on Sunday it is unfortunate that not a single party could get a whole mandate in the elections. In the absence of a majority, a party can only form a government with the help of other parties; therefore, ensuring political and economic stability in the country would be challenging. He added that the major parties and the independent candidates are meeting to agree on the new government while those who lost elections are accusing rigging.
In a statement today, Dr. Murtaza Mughal said that many Western countries are concerned about elections that interfere with Pakistan’s internal affairs. The Western countries that are expressing reservations about the electoral process in Pakistan are ignoring the massacre of Palestinians and extending all possible help to Israel.
Dr Murtaza Mughal said that the party coming to power would have to do it with the help of other parties and independents, resulting in an army of ministers and advisers. A coalition government will spend billions of rupees to keep allies happy. It will not be able to find time and resources to strengthen the economy or provide relief to people. It will further burden the masses, who are already reeling under the cost of living crisis.
He remarked that establishing coalition governments in the centre of Punjab and Balochistan is written on the wall, which may impede development. It seems that the PML-N and PPP will form a government by joining hands as both parties criticised each other during the election campaign but within limits.
Dr Mughal said political leaders should complete consultations and form the government as delay will damage the economy. Severe economic decisions would be necessary to stabilise the economy for the next few years, while a fresh IMF program would also be required.
Given the ideological differences between the PML-N and PPP, a coalition administration can substantially impact the intended results of tax reforms and raise revenue.
The PML-N and PPP have quite different approaches regarding privatising state-owned businesses. This is a persistent problem that has been unsolved for many years.
Since the caretaker administration has already started implementing a privatisation strategy, PML-N and PPP must agree, as these companies are causing the country trillions in losses. The question is whether the ruling coalition, which promised the masses much during the election campaign, would accept these challenging choices.
He said the stock market is already falling due to uncertainty that should not be allowed to spread, adding that the coalition government may be unable to deliver as expected by the masses.