Pakistan: Political unrest and the threat of national bankruptcy

Status: 18.05.2023 5:05 p.m

In Pakistan, even after many protests in the conflict between the government and ex-Prime Minister Khan’s party, there is no solution in sight. Khan immediately calls for new elections, the government would like to see him back in prison.

Ali Khan has hung a Pakistan flag over his white robe. Again and again he stretches her up with both hands and calls out “Long live Imran Khan”. Ali Khan is one of thousands of protesters who have recently taken to the streets of Pakistan. “We came to show our solidarity with Imran Khan,” says Khan. “When the police try to intimidate us, many more people come to support Imran Khan.”

The sometimes violent protests show how tense the situation in the country is. The governing coalition and the party of ex-Prime Minister Khan (PTI) have been accusing each other for months. The government has now opened more than 100 court cases against Khan. Khan, on the other hand, considers the procedure to be a political campaign aimed at excluding him from possible new elections.

In the background the mighty military

Political experts consider this variant to be quite plausible. “I think most of the cases against Imran Khan are politically motivated,” said Qamar Cheema, political analyst. “On the one hand, because he is so popular in the country. On the other hand, during his tenure as prime minister, he himself jailed many politicians. Now they want to settle the score with Imran Khan.”

The conflict is not just limited to the government and Khan, however. The mighty military rules in the background. According to experts, this steers important decisions in Pakistan and influences the overall political strategy. In addition, the military is said to have been partly responsible for Khan having to vacate his post as prime minister last year.

For decades, the military in Pakistan was untouchable. Hardly anyone dared to speak out against the military. For the first time in the country’s history, this appears to be changing. A day after Khan’s arrest, several hundred people broke into the private residence of a military commander in Lahore. They destroyed parts of his property and stole several peacocks from his garden. The incident sparked debate about how united the military is in the current conflict.

Protesters and police have been fighting in various parts of Pakistan since Tuesday.
more

In the worst case: national bankruptcy in June

The political turmoil hits a country already in deep trouble. Pakistan owes its creditors more than 77 billion US dollars. By 2026, it is expected to repay some of that debt, primarily to China and Saudi Arabia.

However, there is no convincing strategy for how this could work. Far-reaching financial reforms would probably lead to further tensions among the population right now in the heated mood. In addition, there is a risk that the poll values ​​could fall before possible new elections.

In the absence of reforms, another rescue package from the International Monetary Fund currently seems unlikely. However, Pakistan has used up almost all international currency reserves and is having major problems importing important products. This leads to significant shortcomings, for example in the healthcare system, where clinics and patients lack important heart medication. In the worst case, Pakistan faces national bankruptcy as early as June.

Issues currently being overshadowed by the conflict between the government and Khan. “Nobody can predict the future of this country at the moment,” says Qamar Cheema. “The government, Imran Khan, the military – everyone is looking for the best starting position and a winning strategy.” So far nobody seems to have found it.

source site