The politics of economic conflicts

Politics in Pakistan is going to be shaped as a conflict between the industrialists and wealthy ruling elites (PML N and their economic policies) and a public reaction to these policies. The PML N think tank has already hinted to go for “austerity” which would mean cuts to developmental projects, social spending and welfare schemes.

The initial challenge for PML N, however, would be how to tackle the energy crisis which has almost crippled economy. Power outage to industries and businesses has already paralyzed the working class and further cuts to welfare schemes and social spending would add fuel to the fire.

Study suggests that fiscal austerity largely contributes to unemployment.  Though the PML N has previously launched self employment schemes such as the “Yellow cab scheme”, this time it is going to be very harder as Pakistan is already deficient in natural gas and we have been witnessing a decrease of supply to CNG stations.