Shaukat Ali Chaudhry
The 12th general elections in Pakistan were held in the 75th year of its history. Pakistan characterised by a semi-feudal, semi-capitalist and tribal system, is reeling under the burden a loan of 6 billion dollars from IMF on the most stringent conditions. The country has a population of 25 crore people, of whom more than 12 crore people are registered in the voter list. The bulk of this population is aged between 18 and 40 which is currently facing severe unemployment. The Covid-19 pandemic, the Russia-Ukraine war and now the Israel-Hamas war have had very negative effects on Pakistan's economy. Climatic changes have also affected the entire environment of Pakistan, and the devastating floods a year ago greatly affected half of Pakistan. Agriculture and industry have not yet recovered from these shocks causing among other things shortage of food stuffs and other daily necessities. During this time, the financial crises of Europe, America, Russia, Ukraine and the Middle East also affected Pakistan's economy. Pakistan imports about 75% of its oil requirements which costs it billions of dollars.
The main source of Pakistan's foreign exchange earnings come from remittances of Pakistani workers abroad who send about 30 billion dollars annually. In addition, Pakistan has a great potential for cotton and textile production and about 450 Textile mills employing millions of workers are also there, However, during the last few years climatic changes resulting in reduction of cotton production coupled with increase in electricity and gas prices have affected the sector greatly causing unemployment. The defence expenditure pf Pakistan has also been increasing day by day and is currently around 3,079,529 million rupees.
Pakistan is neck deep in debt and has to borrow from international financial institutions on their terms to pay the interest. The value of Pakistani currency has fallen to the lowest level in its history. There are no signs of improvement in Pakistani exports. The process of selling national institutions to the private sector is also going on. Currently, the country's fiscal deficit is 8.2 trillion rupees. The national income is approximately 13 trillion rupees. Currently, foreign direct investment is negligible. High inflation and economic stagnation and low productivity have made the situation very difficult.
Three major political parties participated in the 2024 elections, Pakistan Muslim League (N) (PML) Pakistan People’s Party (PPP) and Pakistan Tehreek-e-Insaf (PTI). These three parties elections have ruled the country in different periods. The PML and PPP have been in power more than once, but these three parties have failed to provide a strong foundation for Pakistan's economy or to end the feudal and tribal system. No party could make the country industrially strong. Despite having one of the most extensive irrigation system Pakistan's agriculture has been in decline. Except for rice and sugarcane, all the other essential foodstuffs are imported adding to the trade imbalance. Given the economic stagnation rampant youth unemployment has also given birth to many social problems. The election manifestoes of these parties include provision for employment, education, cheap electricity, independent foreign policy, social security for workers, financial assistance for youth employment, addressing climate change, direct election of the prime minister, cheap supply of solar electricity, providing free electricity up to 300 units to each family, IT revolution for youth, strengthening and stabilizing Pakistan's defence, legal and judicial reforms, promotion of modern agriculture, modern health facilities, and settlement of disputes with neighbouring countries.
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PPP and the PML emerged victorious in the February 8 elections. They are going to form a coalition government together. The PTI has decided to sit in the opposition.
The "China–Pakistan Economic Corridor (CPEC)" project was also an issue in these elections. It is expected to build a safe transport of oil from the middle east to China and in the process help Pakistan develop its industrial and transport infrastructure. It is also expected to generate employment and industrial growth. There is a general impression that the American government is not happy with the project and they want a government in Pakistan that either slows down the pace of the CPEC project or ends it. There are evidences that the PTI government formed in 2018 has slowed down the pace of this project while the leaderships of Muslim League-N and Pakistan People's Party are in favour of completing the CPEC project. Some analysts also argue that the government of China also favours a government which will play a positive role in completing the CPEC project.
In the politics of Pakistan, there are also talks about improving diplomatic and trade relations with neighbouring countries, especially India. The PML and Nawaz Sharif are said to favour strong trade relations with India.
The general impression was that if the Muslim League-N forms a government, then Nawaz Sharif will be the head of it. But this did not happen. PML-N is forming the government together with its allied parties, but instead of Nawaz Sharif, the headship of this government will be handed over to Shahbaz Sharif, the president of PML-N, who is also the younger brother of Nawaz Sharif.
Our point of view in this regard is that Pakistan should improve its relations with all its neighbouring countries in order to get rid of its economic crisis and terrorism, and move forward by resolving all other disputes with India, including Kashmir, through dialogue. In this regard, the rulers of India should take a positive approach and take positive steps to normalize the relations between the two countries.
Shaukat Ali Chaudhry
Secretary General
Pakistan Mazdoor Mahaz (Pakistan Labour Front)
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