The ability of a coalition government to address and overcome economic crises in Pakistan, depends on various factors including the composition of the coalition, its policies, leadership, cooperation among coalition partners, the state of the economy, and external factors. A coalition government, by its nature, involves multiple political parties working together, often with differing ideologies and priorities. This can sometimes lead to challenges in decision-making and policy implementation, especially when it comes to sensitive issues like economic reform. However, if the coalition government is able to effectively coordinate and collaborate, it can potentially bring together a broader range of perspectives and expertise to tackle complex economic challenges. This could result in more comprehensive and balanced policy approaches. Ultimately, whether a coalition government can successfully navigate Pakistan out of an economic crisis depends on its ability to enact necessary reforms, manage fiscal policies effectively, attract investment, promote economic growth, and address issues such as corruption and inefficiency. Additionally, external factors such as global economic trends and geopolitical dynamics will also play a significant role in determining Pakistan’s economic trajectory.

Coalition governments often bring together multiple political parties with diverse backgrounds and expertise. This can lead to more comprehensive policy discussions and solutions that consider various viewpoints. In the context of an economic crisis, this diversity can be advantageous as it allows for a broader range of ideas and approaches to be considered in addressing the underlying issues. On the contrary, PMLN and the PPP have had diverging opinions on economic policies with the later being more inclined towards socialistic policies that include retaining and developing new state-owned entities (SOEs). PMLN on the other hand has always vouched for a free market and privatization of loss-making state entities. The IMF has already expressed its displeasure on the delay in privatization of state-owned power distributors (DISCOs) and the Pakistan’s international flag carrier, the PIA. Such decisions may turn out to be highly unpopular, but it seems there is no other choice for the coalition.

Coalition governments require negotiation and compromise among participating parties to form policies and make decisions. While this process can sometimes be slow, it often results in policies that have broader political support. This can enhance political stability, which is crucial for implementing long-term economic reforms and attracting investment. In a coalition government, parties with different priorities and interests act as checks and balances on each other’s power. This can help prevent the dominance of any single party or interest group and mitigate the risk of policies being driven solely by short-term political considerations. In the context of economic crisis management, this could lead to more prudent and sustainable policy choices. Pakistan requires timely and efficient reforms to prevent the economic system from capsizing. This will require swift decisions which only a powerful single party government can take. Taking crucial decisions in a hung parliament can be time consuming as most pressing issues are marred by political deadlocks in the beginning. Negotiating and implementing policies can be time-consuming and contentious in a coalition government, particularly when parties have conflicting interests. This can hinder the government’s ability to respond swiftly and decisively to economic crises, potentially exacerbating the situation.

The need to secure consensus among coalition partners can lead to policy paralysis, where the government struggles to take decisive action on pressing issues. This can be particularly problematic during an economic crisis when bold and decisive measures may be needed to stabilize the economy and restore investor confidence. Coalition governments are inherently fragile, as they rely on the cooperation of multiple parties with often divergent interests. If disagreements among coalition partners escalate, it can lead to government instability and even collapse, further exacerbating the economic crisis. In Pakistan’s context, where political instability is a recurring challenge, this risk is particularly pertinent. The success of a coalition government in addressing Pakistan’s economic crisis is also influenced by external factors such as global economic trends, geopolitical dynamics, and international assistance. While the government may have control over certain domestic policies, external factors can shape the effectiveness of its economic recovery efforts.

The political crisis that arose after the February 8^th general elections, also has a lot to do with the Pakistan’s economic recovery. A stable economy is not possible without a stable political system, where people’s will be respected and institutions act according to the mandate given to them under the Constitution. The question here is that the people in the corridors of power have allegedly ‘selected’ a team of politicians to fix the economy, who in the first place were responsible for bringing Pakistan’s economy to its current dismal state during their PDM stint of 16 months specifically and generally since they have been holding power by one way or the other since the 1990s. Coalition governments too solve problems if they are backed by true people’s mandate and are legitimate. To have sustainable economic progress, Pakistan needs to be a parliamentary democracy as enshrined in the constitution first. There has to be a proper free and fair electoral system, and a parliament that represents the will of people. The phrase ‘hire a clown, expect a circus’ best depicts Pakistan’s economic future under the current coalition.