Nawaz Sharif’s party, during its governance in Pakistan, demonstrated superior economic management over the past thirty years when compared to its competitors, as per an analysis conducted by Bloomberg Economics. Employing a misery index, which combines unemployment and inflation rates, Bloomberg Economics observed that Sharif’s Pakistan Muslim League outperformed Imran Khan’s Pakistan Tehreek-e-Insaf and the Pakistan Peoples Party led by former foreign minister Bilawal Bhutto Zardari.
Bloomberg Economics calculated the average index values during the respective years each major political party ruled the country since 1990. A higher index value signifies increased economic hardship for citizens.
Results of Bloomberg Economics Misery Index for Pakistan:
- Pakistan Muslim League: 14.5%
- Pakistan Tehreek-e-Insaf: 16.1%
- Pakistan Peoples Party: 17.2%
With Khan currently incarcerated, facing numerous legal charges, and his party effectively disqualified from participating in elections, Sharif appears poised to regain power after the February 8 election. Despite Khan’s continued popularity, with a 57% approval rating according to a recent Gallup opinion poll, Sharif’s ratings have surged from 36% to 52% in the past six months.
Ankur Shukla of Bloomberg Economics noted in the report that the public may be giving Sharif the benefit of the doubt. However, he cautioned that the road ahead for any winning party won’t be easy, considering persistently high inflation and elevated unemployment levels.
Inflation stands at approximately 30%, the country’s currency was the worst-performing in Asia last year, and foreign exchange reserves have declined. Pakistan currently relies on a financial bailout from the International Monetary Fund, and as per the fund’s conditions, the new government will need to implement potentially unpopular policies, such as withdrawing subsidies and raising taxes. The IMF anticipates Pakistan’s economy to grow by 2% in the current fiscal year after contracting in the previous year.
Over the past three decades, the Pakistan Muslim League, under the leadership of Sharif and his younger brother Shehbaz Sharif, ruled the country four times. The PPP under Bhutto-Zardari’s held power three times, while Khan served a three-year term ending in April 2022 when he was ousted from power in a parliamentary vote.
Source: Bloomberg