The economic trajectory of Pakistan is closely tied to its political leadership, and has unfolded distinctly across various eras. In Prime Minister Nawaz Sharif’s third term, the nation witnessed positive economic indicators, including high GDP growth and low inflation. This era significantly contributed to KSE-100 returns, encompassing half of the gains from 2008 to 2023, reflecting a period of notable economic strength.
In comparison, Shehbaz Sharif’s-led PDM government portrayed a different economic scenario, grappling with challenges such as high inflation, currency volatility, and negative GDP growth.
The PPPP era, under PM Yousuf Raza Gilani, faced economic hurdles during the Global Financial Crisis of 2008-09. This challenging period was followed by a relatively expansionary and populist policy regime during the short tenure of PM Raja Pervez Ashraf ahead of the 2013 polls. Imran Khan’s PTI government, achieving high GDP growth and low inflation amid Covid-19 challenges, relied on populist measures, resulting in fiscal deficit expansion.