Pakistan’s economy cannot afford another election delay, warns Zardari

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A scion of one of Pakistan’s leading political families has warned that the country cannot afford further delay to an election set for next month as it struggles with a protracted economic crisis and increasingly volatile security situation.

“Pakistan is dealing with the perfect storm of crises,” Bilawal Bhutto Zardari, the son of former prime minister Benazir Bhutto and chair of the liberal-leaning Pakistan People’s party, told the Financial Times.

Elections were needed “yesterday”, Zardari added, to put in place a government to tackle “our economic situation, unemployment, poverty, inflation hitting historic levels [and] terrorism”.

Zardari’s warning comes as Pakistan grapples with an acute economic downturn as well as a rise in deadly terrorist attacks. This week, Pakistan exchanged unprecedented attacks with neighbouring Iran, which Islamabad and Tehran said targeted separatist terror groups.

Pakistan’s foreign reserves last year dwindled to less than a month’s worth of imports, leading to shortages of vital goods. Islamabad averted default with an emergency $3bn IMF funding programme, but economists have warned that the incoming government needs to secure a longer-term loan after the current scheme ends in April. 

“Once elections take place,” said Zardari, “then our international partners, particularly those who are keen to invest in Pakistan, will have confidence in our political stability.”

But the polls, now set for February 8, have already been postponed from November to allow districts to be redrawn, and analysts have raised concerns that they may not go ahead amid a deteriorating security situation. Pakistan’s Senate passed a non-binding resolution this month calling for a delay, citing a rise in terror attacks and harsh weather conditions.

The election’s legitimacy has also come under question due…