Political Turmoil and Possible State Bankruptcy
In Pakistan, there seems to be no resolution in sight to the conflict between the government and the party of former Prime Minister Khan, despite numerous protests. Khan demands immediate new elections, while the government would prefer to see him back in prison.
Unresolved Political Standoff Leads to Violent Protests
Protesters like Ali Khan have taken to the streets to voice their support for Khan, but the violent demonstrations underscore the tension and unrest in the country. For months, the coalition government and the Pakistan Tehreek-e-Insaf (PTI) party of former Prime Minister Khan have leveled accusations and legal actions against one another. The government has initiated over 100 court cases against Khan, who sees this as a political campaign to exclude him from future elections.
Military Played Role in Imran Khan’s Removal
Experts believe that the powerful military plays a significant role in Pakistani politics and decision-making. Khan’s forced removal from office last year is attributed to the military’s involvement, and the ongoing conflict likely has military implications as well.
Debt Piles Up as Reforms Stagnate
The economic and financial outlook for Pakistan is dire. The country owes over $77 billion to creditors, including China and Saudi Arabia, with no clear or convincing strategy for repayment. Significant financial reforms require careful navigation in the current heated political climate, with the potential to further incite tension and unrest. Without economic reform, it’s unlikely that Pakistan will receive further assistance from the International Monetary Fund. The country has almost exhausted its international money reserves, leading to shortages in essential products, especially in healthcare, where vital heart medications are increasingly scarce.
Possible State Bankruptcy Looms
The lack of economic reform only compounds the problems Pakistan faces in the current political crisis. “The future of this country is unpredictable,” says political analyst Qamar Cheema. “The government, Imran Khan, the military – everyone is searching for the best possible outcome and a winning strategy.” Unfortunately, that strategy has yet to be found, and if the financial crisis remains unresolved, Pakistan is at risk of state bankruptcy as early as June.