An analysis by Bloomberg Economics reveals that Pakistan’s economy witnessed its best performance in the past three decades under the leadership of Nawaz Sharif, who served as Prime Minister thrice.
The report compares economic indicators during Sharif’s tenure with those of his rivals, including Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) and Bilawal Bhutto Zardari’s Pakistan Peoples Party (PPP), using a misery index that combines inflation and unemployment rates.
According to Bloomberg Economics, the analysis utilized an average of the misery index values over the years when each major political party ruled Pakistan since 1990.
The results indicate that Sharif’s Pakistan Muslim League (PML-N) outperformed both PTI and PPP in managing economic challenges.
With general elections scheduled for February 8, Bloomberg suggests that Nawaz Sharif seems poised to return to power for the fourth time, especially as Imran Khan faces legal issues and incarceration.
Despite Khan’s popularity, with a 57% approval rating according to a recent Gallup poll, Sharif has experienced a surge in popularity from 36% to 52% in the past six months.
The past three decades saw the PML-N rule Pakistan four times under Sharif and his younger brother Shehbaz Sharif. The PPP under the Bhutto dynasty has held power three times, while Khan was in office for a four-year term ending in April 2022 when he was ousted from power in a parliamentary no-trust vote.
“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,” the publication said, explaining its conclusions.
Bloomberg Economics Misery Index Results for Pakistan showed the Pakistan Muslim League scored 14.5 percent, Pakistan Tehreek-e-Insaf 16.1 percent, and the Pakistan Peoples Party 17.2 percent.
Pakistan is currently grappling with economic challenges, including seeking a financial bailout from the International Monetary Fund (IMF).
Inflation is close to 30 percent in Pakistan, the currency was Asia’s worst performer last year and foreign exchange reserves have slumped.
The incoming government, as per IMF conditions, will need to implement potentially unpopular policies such as withdrawing subsidies and raising taxes. The IMF forecasts a 2% growth in Pakistan’s economy for the current fiscal year after experiencing a contraction in the previous year.
Despite the positive economic indicators during Sharif’s governance, the report underscores the formidable tasks awaiting the new government in addressing the country’s economic hardships.
