Equity and bond markets have welcomed Imran Khan’s victory in Pakistan’s disputed election, but the former cricket hero faces a tough slog to avert a currency crisis and implement long-term reforms needed to end decades of boom-and-bust cycles.
Khan’s first major economic call will be to decide whether to ease pressure on the rupee by seeking Pakistan’s 12th bailout from the International Monetary Fund (IMF) since the late 1980s.
Harder still will be to persuade more people to pay taxes in a nation famous for tax dodging, turn off subsidy taps draining government coffers, and reform loss-making state-run enterprises that past governments have struggled to sell off.
“The country’s position is such that now you can no longer sustain the status quo,” said Suleman Maniya, head of research at local brokerage house Shajar Capital. “Speed is of the essence.”

Pakistan’s Imran Khan faces tough test in looming economic crisis

Pakistan’s benchmark stocks index has surged about 3.5 percent since it became clear on Thursday morning that Imran Khan would win a strong mandate. (File photo: Reuters)
Reuters, Islamabad
Saturday 28 July 2018
Last Update: Wednesday, 20 May 2020 KSA 09:52 - GMT 06:52
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