Pakistan Stalemate Ends as Sharif’s Party Aims to Bring PPP into Cabinet, Reports Reuters

By Ariba Shahid and Asif Shahzad

ISLAMABAD – A political deadlock in Pakistan that followed an inconclusive election has been resolved with Shehbaz Sharif being reappointed as the country’s leader. Meanwhile, discussions are ongoing to encourage the second-largest party to join the government to promote stability.

Sharif, 72, who previously served as prime minister for 16 months until August, was designated as the coalition candidate for premier by his elder brother Nawaz Sharif, the founder of the Pakistan Muslim League-Nawaz (PML-N), the largest party in the parliament.

The Pakistan Peoples Party (PPP), led by former foreign minister Bilawal Bhutto Zardari and the second-largest party, has expressed support for Sharif but has not yet agreed to join the government. Instead, it has indicated a preference to provide external support for a minority government.

Following the announcement that resolved the political gridlock after the February 8 elections, Pakistan’s stock market responded positively, with the benchmark index experiencing a 2% rise on Wednesday—the largest increase since the delayed election results were released over the weekend.

Officials from both the PML-N and PPP have formed internal committees to discuss the details of government formation. Their agenda includes negotiations to secure PPP’s participation in the administration and the allocation of cabinet positions.

PPP leader Faisal Karim Kundi stated, "They are trying their level best but we are not joining the cabinet up until now."

Analysts emphasize the necessity of a stable government with the political authority to make tough decisions in order to navigate the country’s ongoing economic crisis. Ahsan Iqbal, Secretary-General of the PML-N, highlighted the importance of collaboration, stating, "Coalition governments can’t work on the principle that one partner takes up all the load while the others observe from afar."

The country, which is home to 241 million people and is armed with nuclear weapons, is currently facing significant economic challenges, including slow growth and persistent inflation, all while experiencing a rise in militant violence.

Last summer, Pakistan managed to avoid a sovereign default through a $3 billion bailout from the International Monetary Fund (IMF), but that support will conclude in March, necessitating the establishment of a new and extended financial program.

The ability of the new government to negotiate this program quickly will be crucial. It may also encounter political tensions with independent parliament members, backed by former Prime Minister Imran Khan, who have become the largest group in the legislature and are currently in conflict with the military while alleging electoral rigging.

Both the caretaker government and the election commission have dismissed these allegations. Khan, currently imprisoned on corruption and state secrets charges, was unable to contest the election directly, forcing party members to run as independents.

Negotiations between the PML-N and PPP have begun, but political commentator Zahid Hussain notes that forming a stable coalition government will not be straightforward. He pointed out that while the PPP has shown support for a PML-N-led government, it appears unwilling to join the administration, reflecting a concern that a weak coalition may lack the ability to deliver effective governance.