Pakistan

In recent spate of political events, the license of one of the mainstream news broadcasters, ARY News, was cancelled by the Pakistan Electronic Media Regulatory Authority (PEMRA). PEMRA issued a ban on airing the speeches of the former premier Imran Khan on March 5th, with the warning that any media house found in violation would have its broadcasting license cancelled.

The mini-budget 2023 has become infamous for the economic shock waves and the glaring reduction in the purchasing power of the citizens of Pakistan. In the hopes of securing a $1.1 billion deal with the IMF, the current government hurriedly drafted a “cure-all” mini-budget which received formal assent from the President just last month. Afifa Iqbal provides a concise description of the mini-budget, so that more citizens, especially the youth, are able to get a clearer understanding.

In just the last two months, significant political harm has been done to the government, to major institutions and their reputations, as well as to the general elite. This is a direct result of the issues posed by inflation and the additional drastic deterioration of consumer capabilities. Hina Anwar believes that the comparative economic advantage of Pakistan’s rivals (e.g. India) will further pull the country into political and economic crises. Such crises are likely to manifest in the short term, as a fresh wave of terrorist attacks by the TTP, Daesh, and the separatists in Balochistan.

Shahid Khaqan Abbasi’s resignation in the wake of Maryam Nawaz’s appointment as senior VP and chief organiser led to speculations about his continued membership of the party. Would this resignation and appointment widen the intra-party divisions, leading to prospective defections of senior members of PML-N?

As the international market continues to become competitive, countries such as Pakistan are increasing their dependence on the IMF. The loan programs come with terms and conditions highlighting austerity for rebalancing the government’s books. However, these deals have been observed to exacerbate economic inequality in Pakistan. Following the current political turmoil in Pakistan, the interim set-up has negotiated yet another deal that has directly affected the exchange rates. In order to understand the current situation, Zainab Haseeb gives an overview of the 9th economic review of a $7 billion loan program.

Pakistan is currently facing a political impasse, a dwindling economy, surging inflation, escalating terror threats, and the possibility of a worldwide recession. Concerns about the status of Pakistan’s economy are mounting as foreign reserves dwindle, the local currency weakens, and inflation persists at levels not seen in decades. A government exists in Pakistan that is unable to exercise or relinquish power. Bitter, the opposition is sticking to its rhetoric of fire and brimstone. Neither are aware of their ultimate goal. The government avoided a default earlier this month, but now its foreign exchange reserves have fallen to $4.3 billion, the lowest since 2014. Although the finance minister acknowledges that the economy is in a “tough spot”, he simultaneously dismisses fears of Pakistan’s default and calls it propaganda from the opposition. The truth is, the country remains a hair’s breadth away from the bleak prospect.

The previous year proved to be very bleak for various industries and companies in Pakistan, with several expecting to shutdown and suffer huge losses this year as well. Some industries have already shut down operations, while others are expected to follow the trend thus projecting industrial growth to be a negative 4% in FY23.