Pakistan’s economic challenges, particularly its fragile external and liquidity position and unsustainable budget deficit, are enormous, and the Feb 8 polls have failed to bring even a semblance of political stability needed to deal with them by producing a fractured mandate.

Last summer, the country had barely avoided a default on its international payments thanks to a nine-month $3 billion bailout package from the IMF, scheduled to end in mid-April.

The split public mandate has triggered intense politicking, as no party has won enough seats to form its government on its own, and every party is reluctant to lead the country. The PPP has announced that it will conditionally back a minority government to be led by the PML-N from the outside, knowing the failure to stabilise the economy could result in political backlash from the public.

In return for its support, it wants all top constitutional offices for itself. Additionally, it has demanded the PML-N support for forming its government in Balochistan and a share in Punjab.

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