Pakistan may face more economic misery if election result unclear
Feb 10, 20:38
The possibility of a political stalemate in Pakistan leading to delays in both reforms and crucial foreign funding has sparked a selloff in its international bonds and fuelled analysts' fears of further economic misery for the country.
Results coming in from Thursday's election saw an unexpectedly strong showing for independents - mostly supporters of jailed former prime minister Imran Khan - trailed by former prime minister Nawaz Sharif's Pakistan Muslim League-Nawaz (PML-N) and the Pakistan Peoples Party of Bilawal Bhutto-Zardari.
Sharif has already claimed victory, but his party remains far short of the necessary number of seats to form a government on its own.
The election, which was itself much delayed, comes at a pivotal moment.
Pakistan is in an economic crisis, with dwindling foreign currency reserves that will be further strained by a $1 billion bond payment due in two months, while its $3 billion funding programme with the International Monetary Fund expires on April 12.
"Pakistan will be entering into more severe political and economic instability if no party emerges with a simple majority," said Sajid Amin of the Sustainable Development Policy Institute, a former adviser to the ministry of finance.