Islamabad January 22 2024: Pakistan’s government under Nawaz Sharif’s party had the best performance in managing the economy over the past three decades compared with rivals, according to an analysis by Bloomberg Economics.
Using a misery index for Pakistan, which combines the unemployment and inflation rates, Bloomberg Economics found that Sharif’s Pakistan Muslim League scored better than Imran Khan’s Pakistan Tehreek-e-Insaf and the Pakistan Peoples Party of former foreign minister Bilawal Bhutto Zardari.
Bloomberg Economics used an average of the index values over the respective years when each of the major political parties ruled the country since 1990. A higher value indicates more economic hardship for citizens.
With Khan currently jailed while he fights dozens of legal charges, and his party effectively barred from contesting elections, Sharif looks set to resume power after the Feb. 8 election. Khan, an ex-cricket star, is still the most popular politician, with an approval rating of 57%, according to a recent Gallup opinion poll. Sharif’s ratings have jumped to 52% from 36% in the past six months.
“The public may be giving Sharif the benefit of the doubt,” Ankur Shukla of Bloomberg Economics wrote in the report. He added that the “road ahead won’t be easy for any party that wins the election,” given inflation remains near record highs and unemployment is also elevated.
Inflation is close to 30%, the currency was Asia’s worst performer last year and foreign exchange reserves have slumped. The country is currently relying on a financial bailout from the International Monetary Fund, and under the fund’s conditions, the new government will need to implement policies that may be unpopular with voters, such as withdrawing subsidies and raising taxes. The IMF expects Pakistan’s economy to grow 2% in the current fiscal year after contracting in the previous year.
The past three decades saw PML rule Pakistan four times under Sharif and his younger brother Shehbaz Sharif. The PPP under Bhutto-Zardaris have held power three times, while Khan was in office for a three-year term ending in April 2022 when he was ousted from power in a parliamentary vote.
