Pakistan's old guard parties near deal to thwart Imran Khan
The parties of the Sharif and Bhutto clans “agreed in principle to save the country from political instability,” according to a statement posted on X last night by Pakistan Muslim League-Nawaz President Shehbaz Sharif.
Pakistan's two main family-controlled political parties are drawing closer to forming a coalition government that would thwart Imran Khan's group, even after the jailed former cricket star's candidates won the most seats in the country's contentious election.
The parties of the Sharif and Bhutto clans "agreed in principle to save the country from political instability," according to a statement posted on X last night by Pakistan Muslim League-Nawaz President Shehbaz Sharif.
The scenario would be a closing of ranks by Pakistan's old guard after Khan's loyalists — running as independents — defied the odds with a strong performance in Thursday's election, showing the public's enduring support for Khan and disillusionment with the status quo. It could also lead to more protests and unrest across the country.
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The Sharifs' PML-N and Bilawal Bhutto Zardari's Pakistan Peoples Party held meetings over the past two days as they seek to form a coalition after the election resulted in another hung parliament.
Bhutto Zardari's party said it would consider PML-N's proposal at a Monday evening meeting of its leadership. Sharif "sought the help" of Bhutto Zardari, the son of assassinated former premier Benazir Bhutto, to form a government, the PPP said in a statement posted on X.
Neither party disclosed the details of the proposal, instead posting videos of members of the two families embracing and holding talks in the sprawling Bhutto Zardari residence in Lahore.
A coalition of the two political clans could raise tensions after an already contentious election, which saw Khan's candidates, forced to run as independents, shock observers by winning the most seats but falling short of a majority.
Any delays in forming a government would weigh on an economy already challenged on several fronts. Inflation is running at 28%, the fastest pace in Asia, and the latest International Monetary Fund bailout program is set to expire in March, suggesting the next leader will have to negotiate a new deal.
"Irregularities and a delay in election results could start a legal battle and this situation can also jeopardize the economic outlook in the short run," said Adnan Khan, head of international sales at Intermarket Securities Ltd.
Pakistan's stocks closed 3.1% to the lowest in about seven weeks amid the political uncertainty. Dollar bonds maturing in April dropped by the most since July 2022 before paring losses.
