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Economy after political chaos

Economy after political chaos

A report issued by the joint investigation team has shacked the political atmosphere of the country by pointing finger at Prime Minister Nawaz Sharif’s business interests at home and abroad.The emerging situation has not only damaged the personal reputation of Mr Sharif, but also severely affected the performance of the overall economy. The Pakistan Stock Exchange has shed over 17 percent of its leverage during the last two months and corruption charges have thrown the career of Mr Shairf in vague. The case is now in the Supreme Court and a sword of Damocles is hanging not only over the political system but also on the economy. Economists fear if the current pace of political chaos continues, it will push down the economy ahead of the national elections in 2018. The lack of attention of the government on financial affairs has left the national currency in the danger zone. Some big players had devaluated Pakistani rupee last week, but Finance Minister Ishaq Dar came to its rescue and put the value back on track. However, it is feared that rupee will again be forced to either fall much further, or the government will have the only option to request another loan programme from any international donor agency.

The official data reveals a sharp increase in trade deficits over the last three years due to rising import bill and declining exports, depriving the central bank of its foreign exchange reserves by 15 percent. Reports suggest the economy of Pakistan is likely to slow down during the next fiscal year. The Pakistan Muslim League-Nawaz government is trying to keep the situation under control and avoid any shock to the economy until the general elections. However, in the middle of political implications, it will be difficult for the government to concentrate on the pressing issues and save the economy from decline. The current political and economic situation is creating challenges for the next government which will take over the rein of the country after general elections in summer next year. Experts believe the political leadership across the board should prepare themselves for the elections instead of pulling legs of the prime minister in the name of corruption. The country is already facing various social, economic and regional challenges. The hostile governments of India and Afghanistan are hurling threats on Pakistan, and in this situation, there is a need to keep unity among all the elements in the political spectrum. The scandalous news about the prime minister are scaringthe investors away from the country.