Economy / Pakistan
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Coalition Talks Indicate Desire For Unity
March 2008 | Political Risk AnalysisSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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BMI View: The agreement by opposition leaders Asif Ali Zardari and Nawaz Sharif to form a coalition government suggests that Pakistan will experience less political tension in the coming months, as we expect Pervez Musharraf will reluctantly accept a diminished role in order to safeguard his presidency. Zardari's moves since the national and provincial elections indicate a concerted effort to enhance stability throughout the country. Nevertheless, long-term risks remain, as Zardari and Sharif are likely to eventually battle each other for primacy, particularly once the incoming government is forced to tackle Pakistan's economic problems.