One of my annual predictions for the last couple of years is that Pakistan will have some internal problems that could change everything in the AfPak region…..and this year is No different and now there is a bit more info on the country….
Reuter’s as usual has a terrific breakdown……
What to watch:
— Whether the government can bring the MQM back on board. To achieve this, President Asif Ali Zardari may have to take decisive steps such as the dismissal of his close aide and Sindh province’s home minister, Zulfiqar Mirza, a vocal critic of the MQM, which dominates politics in Pakistan’s financial capital and biggest city Karachi. A deal may be possible given divisions between the MQM and the main opposition party, led by former prime minister Nawaz Sharif.
— Whether the prime minister quits. Differences between Zardari and Gilani have raised speculation that the prime minister is becoming vulnerable. Some analysts say Gilani may opt to resign instead of facing a confidence vote, which may encourage some of the disgruntled former allies to rejoin the government.
— Whether opposition opts for a no-confidence vote. With the MQM sitting the opposition, the government clearly loses its majority in the National Assembly. The opposition could now press ahead with a no-confidence vote against the prime minister in parliament. Much will depend on Sharif’s Pakistan Muslim League (PML-N). Sharif is one of Pakistan’s most popular politicians, but he does not enjoy good ties with most political parties and the chances of the opposition forming a new ruling alliance are slim. The ruling Pakistan People’s Party (PPP) may try to lure some of the other, smaller opposition parties into its fold to regain a majority, but that looks unlikely. Therefore, a call for early elections is likely.
— Pakistan’s latest political storm could further weigh on investment in a country that relies on an $11 billion IMF loan agreed in 2008 to help its fragile economy. It will also make it even harder to reach agreement on a new reformed general sales tax (RGST), a key condition for future IMF loan disbursements.
Last year the floods were a good chance for the Army to step in and rattle the government…..they missed the chance…..but will they miss yet another chance to regain power? Keep in mind the nukes….always a great thing to have to get your way, right?