Eco-political uproar and Interim government

The caretaker government is required to assist the Election Commission in conducting the polls and to maintain daily operations of the government by the Election Act of 2017. It contained stringent directives for the caretaker administration to “restrict itself to activities that are of routine, non-controversial and urgent, in the public interest and reversible by the future government elected after the elections,” as stated in section 230 (1). Additionally, section 230 (2) stated that the interim government could not engage in “major international negotiations with any foreign country or international agency or sign or ratify any international binding instrument except in an exceptional case” or make “major policy decisions except on urgent matters.” In such scenario, the caretaker government is not responsible for the stability at all. They are just here to pass the time and to only conduct the free and fair election.

There is no constitutional basis for a protracted caretaker arrangement, hence the government’s current priorities should be holding free and fair elections and establishing a neutral caretaker arrangement. After that, everything else comes into place. The decisions about policy must wait. Additionally, the move feeds rumors that the elections won’t take place in the allotted period. Unfortunately, the country can descend even farther into anarchy as a result of the elections, which are meant to reinforce democracy and offer political stability.

The 16-month tenure of the 13-party coalition government led by the Pakistan Democratic Movement (PDM) came to an end, and a technocratic caretaker administration was appointed to supervise the impending general elections. This change in power is not as simple as it might seem, though. Uncertainty has arisen since the new caretaker government was appointed. There are questions about whether Pakistan will successfully switch to a new democratic government or if the caretaker arrangement would go beyond its constitutional authority.

Concerns have also been raised about Pakistan possibly reverting to a praetorian state, in which the army controls and governs the nation’s political institutions and atmosphere. These concerns are the result of two important considerations. The first concerns the democratic culture’s downturn that was noted when the PDM government was in power. The second concerns the makeup of the current caretaker government, which seems to have been imposed by the nation’s most powerful individuals.

Addressing Pakistan’s persistent economic issues is a pressing priority for Caretaker PM Kakar. With a $124.3 billion external debt, a growing current account deficit, record-breaking inflation, a faltering economy, and the threat of a serious energy crisis, the nation faces several challenges. Kakar may have an advantage in luring in foreign investment because of his distinctive non-elite upbringing. Being from the mineral-rich but underdeveloped province of Balochistan, he may be able to convince foreign investors of the region’s strategic importance due to his knowledge of its location and geopolitical significance.

Although there may be some short-term respite from these economic problems through the Special Investment Facilitation Council (SIFC), a civil-military hybrid forum designed to attract international investment and stimulate economic growth, Kakar’s main task is keeping Pakistan from turning into a rentier state. He has to make sure that foreign assets are protected from Pakistan’s deeply embedded elite capture practice. Complex concerns are further introduced by Kakar’s geographic background. He is expected, on the one hand, to protect the interests of foreign investors, including China, as well as the military establishment in his home province of Balochistan. He must, however, also attend to the complaints of the oppressed Baloch people, who are plagued by destitution, marginalization, and the unbridled exploitation of their natural riches.

For the first time last week, the government increased the price of gasoline above the 300 rupees ($1) per litre (0.26 gallons) barrier. In the 76-year history of the country, this exchange rate with the dollar is the lowest. In the meantime, fresh data revealed that August’s year-over-year inflation rate was 27.4%, with motor gasoline prices rising by 8% in July. The public and those in positions of authority are becoming increasingly estranged from one another.

Kakar also has to deal with the problem of combating the growing terrorism within Pakistan. The lack of a coherent strategy for Afghanistan makes this work more difficult because terrorists use Afghan land as a springboard for their attacks—a claim that the Afghan Taliban contest. The TTP has increased its activity over the last year, launching over 123 attacks—nearly twice as many as it did the year before. To make matters more complicated, there have been rumors of a surge in young Taliban fighters entering Pakistan who are disillusioned with peacetime and want to experience the exhilaration of combat again. They want to fight with their Pakistani compatriots in the jihad. Concurrently, the ISKP—which is mostly comprised of ex-TTP members—is quickly growing more powerful inside Pakistan.

The possible implementation of the Pakistan army chief’s threat of a strong military reaction against the Taliban rule could spark a full-scale conventional conflict between the two nations amid the already high level of animosity between the Pakistani Army and the Afghan Taliban. Such a battle would need Kakar to be well-prepared to prevent such an event or at the very least, manage its aftermath. It would also entail a huge loss of life, financial costs, and the potential to cause economic instability and a refugee problem.

Shehbaz Sharif, the former prime minister, negotiated the conditions of the IMF pact and the temporary leadership while leading a fragile coalition that struggled to revive the economy during its brief rule following Imran Khan’s ouster in 2022. With total payables of Rs. 2,631 billion for the July–April FY23 period, Pakistan’s circular debt has increased further. Compared to the same period last year, when the circular debt was Rs. 2,450 billion, this is an increase of 7.38 percent. The sustainability of the entire energy system is at stake due to power companies’ potential inability to pay for improvements, fuel, and infrastructure upkeep as a result of escalating cyclical debt.

The foundation of a robust democratic process is the election process. Any nation’s stable democracy is built on the foundation of free and fair elections and a seamless handover of power. Some democratically elected administrations go into caretaker mode in the run-up to the general elections, which severely restricts their authority.

Not only does our system’s inefficient resource allocation burden the public more heavily through higher taxes and levies, but it also drives up commodity prices as a way to finance budget deficits. Mismanagement of resources is the result of this.