As expected, the IMF agreement has given a boost to business activities in the economy and reinforced investor confidence. The Pakistan Stock Exchange surged after reopening on the first day of the business week after an extended break, raising hope that the economy was back on track.
The prime minister rejoiced over the resumption of business activities and signs of economic recovery as he sought to take credit for leading to a path of development. He said the business community has reposed trust after the IMF deal and is investing in the country. However, the excitement may be short-lived as the Finance Bill has been enforced and a plethora of new taxes will be imposed.
Nevertheless, the IMF deal couldn’t have come at a better time for the PML-N. The tenure of the PDM coalition government comes to an end next month. A new interim setup will take over and will deal with the situation. The PML-N will be absolved of its responsibility and will take credit for reviving the IMF deal and saving the nation from default.
During the election campaign, the PML-N will surely blame the beleaguered PTI for sabotaging the deal and harming the nation. It will be boosted by the return of Nawaz Sharif, who is finding ways to make a grand comeback that could herald his return to power. The PML-N is ensuring that all legal obstacles are removed before his return.
It need to be PML-N can benefit from the situation. Although the embattled PTI may not ready for a contest, the allies will be the biggest opponents. It remains to be seen if the PPP will take advantage of the situation for political gains. It has walked a tightrope with the PML-N to keep the PTI at bay and also not face the brunt of the economic crisis.
Nawaz Sharif and Zardari seem to have decided on the next setup before the polls. They have even decided the names of the caretaker prime minister. As the government comes to its term, we will see the allies turn foes as they battle it out to claim the throne. The heavyweight PTI might be knocked out for now but the presence of new entrants, such as the IPP, may prove to spoilers.
Political parties should remember that the economic conditions will have an effect on their standing in the next election. Rather than rejoicing at short-term gains, they should realize that the crisis will have political repercussions and will come to haunt them.
