World

The national and provincial governments are poised to have weak coalitions at the helm. These will struggle for credibility amidst PTI’s refrain of a stolen mandate, and may leave tough economic reforms on the backburner, thereby intensifying the existential crisis Pakistan finds itself in The outcome of recent elections has increased political uncertainties in Pakistan. The elections resulted in Independent candidates supporting Imran Khan winning 92 seats (Total number of Independents 101). This exceeded the tally of PML-N (79) and PPP (54) seats. No party secured a simple majority. A coalition government has been announced headed by Shehbaz Sharif. This includes PML(N), PPP, MQM, and smaller parties. While they would be able to muster a majority, it would be a weak coalition. Its le...

According to the Asian Development Bank, the Indian economy is expected to grow by approximately 8% in the next 5-6 years, endorsed by increasing public investment in infrastructure and a pickup in private sector investment. Investors, motivated by the results of their investments in the past fiscal year, are prepared to devote a significant gear percentage of their savings to capital instruments in the forthcoming years. They are also motivated to invest in the growing industries in India. Numerous experts speculate that the Indian Stock Market will also have progressed and expanded to the fifth largest in the world, accounting for the highest market capitalization. The market grows with various stepping elements supporting this expansion, such as government initiatives, foreign re...

Negotiations on a new government in Pakistan have allayed immediate fears of instability in the nuclear-armed nation following inconclusive elections last week, but the risk of a full-scale economic crisis remains.A $3 billion programme from the International Monetary Fund (IMF) runs out next month and securing a new and much bigger one is widely seen as the priority for the new administration.WHO COULD THE IMF NEGOTIATE WITH?The largest party, the Pakistan Muslim League-Nawaz (PML-N), secured support on Tuesday from the second biggest, the Pakistan People's Party (PPP), and is trying to persuade it to form a majority coalition.The caretaker government in place since August is implementing the IMF loan programme which helped to avert a sovereign debt default when it was approved in July. ...

The Maldives is at a high risk of external and overall debt distress, the International Monetary Fund (IMF) warned on Wednesday but did not provide any details about the debt. It said the country's fiscal and external vulnerabilities have increased, calling for urgent policy adjustment. "Maldives remains at high risk of external and overall debt distress," said IMF staff teams in a report prepared after a visit to the country. The global financial institution said that without significant policy changes, the archipelago nation's overall fiscal deficits and public debt are projected to stay elevated. "Amid elevated fuel prices coupled with continued strong import demands, the current account deficit in 2024 is projected to remain large, albeit gradually narrowing over the medium term." ...

The highlights this week: Pakistan readies for elections that will follow the usual script, an Indian government spokesperson affirms the country’s engagement with the Taliban, and a Sri Lankan cabinet minister resigns amid a health care scandal. Pakistan’s Elections Will Follow the Usual ScriptA top Pakistani political party is subjected to a harsh crackdown ahead of national elections. Its members are harassed, abducted, and arrested. Media outlets are pressured not to cover any of the party’s activities, and critics of this repression are silenced. The party’s top leader is given a long jail sentence on the eve of the polls. This was the situation for the Pakistan Muslim League-Nawaz (PML-N) in 2018. Today, the PML-N is contesting Pakistan’s Feb. 8 elections with no problems, and...

Pakistani voters head to the polls on Thursday amid a deep-seated economic crisis. Inflation is hovering at 30 percent, close to 40 percent of people live below the poverty line, and the debt-to-gross domestic product (GDP) ratio has climbed to 72 percent. Pakistan’s new government will have to contend with these and an ageing public infrastructure. “We have power outages every day for two hours,” says Muhammad Waqas, a janitor from Islamabad. “In the summer, when it’s hot, you sit idly and suffer.” As with other state-owned firms, the inability of successive governments to invest in Pakistan’s National Transmission and Despatch Company has left it prone to failure. More recently, the COVID-19 pandemic and energy supply challenges dampened Pakistan’s growth prospects and constrai...