KARACHI: With no clear majority of any party in the National Assembly, the long-delayed economic reforms agenda has once again become challenging.
It is likely that the new government will try the same old ways of running the economy and try to run its affairs by increasing energy prices, which will result in higher inflation.
Experts say that the Pakistani rupee will remain stable against the dollar and other foreign currencies in the short term, however, due to the uncertain political situation, the stock market and Pakistani Eurobonds may come under pressure.
Speaking to The Express Tribune, independent analyst Adnan Agar said that whoever forms the government will have to go to the IMF to get a new program to enable economic stability and the country’s development.
He said that in order to get rid of the IMF, Pakistan has to reform taxes, and taxes on agriculture and real estate sector, but how will the elites allow themselves to be taxed?
Instead of stopping line losses and power theft, the government would prefer to increase electricity and gas prices, instead of taxing the rich, it would prefer to increase taxes on already overtaxed businesses.
Yousaf Farooq, director of research, Chase Securities, said that Pakistan cannot afford another political instability. If political stability does not come, the value of the stock market and Eurobonds will fall. Economic stability and relations with the IMF are the biggest challenges for the new government. shall be.
