Pakistan’s economy witnessed its most successful management in the past three decades under the governance of Nawaz Sharif’s party, according to an analysis by Bloomberg Economics published this week. The report indicates that Sharif’s Pakistan Muslim League (PML-N) outperformed its rivals, including Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) and the Pakistan Peoples Party (PPP) led by Bilawal Bhutto Zardari.
Bloomberg Economics utilized a misery index, combining inflation and unemployment rates, to assess the economic conditions in Pakistan. The analysis revealed that PML-N achieved a better score, with a misery index of 14.5 percent, compared to PTI’s 16.1 percent and PPP’s 17.2 percent. This assessment considered the average index values during the periods when each major political party held power since 1990.
Despite the higher misery index, Imran Khan remains the most popular politician with a 57 percent approval rating, as per a recent Gallup opinion poll. However, Nawaz Sharif’s popularity has surged from 36 percent to 52 percent in the last six months.
Bloomberg Economics acknowledges that the road ahead for any winning party in the upcoming election won’t be easy, given the prevailing economic challenges. Inflation in Pakistan is around 30 percent, the currency performed poorly last year, and foreign exchange reserves have declined.
The country is currently dependent on a financial bailout from the International Monetary Fund (IMF). The IMF’s conditions necessitate the implementation of potentially unpopular policies by the new government, including subsidy withdrawals and tax hikes.
Although the IMF anticipates a 2 percent growth in Pakistan’s economy for the current fiscal year after a contraction in the previous year, the report emphasizes that addressing high inflation and elevated unemployment remains a formidable task for the incoming government. Despite the economic hardships, the public seems to be giving Nawaz Sharif the benefit of the doubt, according to Bloomberg Economics. The article concludes that the challenges ahead require careful navigation, as any winning party will face the complexities of implementing necessary but potentially unpopular economic policies.
