Prime Minister Shehbaz Sharif’s incoming coalition government has a serious challenge on its hands from the get go as it will have to grapple with a worsening economic crisis, political turmoil, and several hurdles in the foreign policy arena. The situation is further complicated by the uncertainty of how long such a coalition can function as it is composed of disparate groups that often have conflicting political and economic aims. PM Sharif has announced a raise in the minimum wage to Rs25,000 and a 10 percent hike in pensions of retired government employees. In the scenario that the programme is completed and reserves rise, the State Bank may be able to stabilise the rupee-dollar parity and instil some semblance of stability in the short-term. PM Sharif has called an urgent meeting of leading economists to discuss the dire economic situation facing the country.

Source: The Nation April 13, 2022 09:47 UTC