New PM set to face host of challenges

ISLAMABAD : Two of the biggest challenges confronting Prime Minister Imran Khan are Pakistan’s sputtering economy and the fraught civil-military ties.

As the country is on the verge of a balance of payments crisis, the question is whether Khan will opt for a bailout from the International Monetary Fund (IMF) or try and go it alone with the help of allies such as China. Most analysts believe the new government will do a bit of both. “I forsee them going to the IMF but also getting help such as short-term loans from allies like Saudi Arabia and China,” said economist Shahid Siddiqui.

Siddiqui said Khan will use his credentials to get friendly countries to invest in sectors such as energy and agriculture. “What we are seeing is that within a few weeks there will be a comprehensive economic plan in place which will put emphasis on growth and improving the country’s financial indicators.”

Shoring up the rupee against foreign currencies will be Khan’s priority given the effect devaluation has on inflation. “The priority will be to increase foreign exchange reserves in the shortterm,” said banker Shahid Hussain. Hussain said Khan enjoys much higher credibility among overseas Pakistanis than any other previous premier. “I expect that he will use that goodwill to get overseas Pakistanis to invest in Pakistan.”

Pakistan has spent nearly half its history under military rule, and experts had warned of a “creeping coup” fuelled by tensions between the military and three-time premier Nawaz Sharif, largely because of his desire to assert civilian supremacy and seek better ties with arch-rival India.

Khan will face greater scrutiny as his government navigates relations with the all-powerful military since his opponents have alleged he was given a helping hand by the army in the elections after Sharif’s ouster by the judiciary last year and subsequent arrest for corruption.

“There are a number of points of discord, be it foreign affairs, terrorism and even how to manage the economy. There are bound to be disagreements,” said an analyst.