According to a report by Economic Intelligence Unit, the PML-N-led alliance is anticipated to secure victory in the 2024 elections, while the report underscores the prevailing political and security weaknesses in Pakistan. The real GDP is expected to shrink significantly during the financial year 2023-24 from July to June.
The report, based on a study conducted by the international organization IPSOS, reveals that widespread protests in May targeted military installations, contributing to increased political instability. However, Pakistani state institutions demonstrated significant resilience, swiftly controlling the situation amid vigorous protests.
The analysis highlights that in June 2023, Pakistan secured a 9-month loan package from the IMF, aiding in preventing default on autonomous loans. Notably, the report attributes the remarkable improvement in the currency in September and October to government crackdowns on illegal activities such as tax evasion, resulting in a 10% increase.
The Pakistani government’s effective response to illegal activities, akin to tax evasion, through a crackdown has contributed to a substantial upswing in the currency. The report emphasizes that the government’s actions against illegal practices have been instrumental in achieving a notable improvement in the currency, particularly in September and October.
Despite the economic challenges, the PML-N-led alliance appears to be favored in the upcoming 2024 elections, according to the Economic Intelligence Unit’s assessment. The report signals an intricate interplay between political dynamics, economic conditions, and public sentiments as Pakistan navigates through a critical juncture in its political landscape.