Split mandate sparks economic stability concerns

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The results of the eagerly-awaited Feb 8 general elections have sparked concerns about the potential for achieving political and economic stability after a long wait of over a year in the country.

Policymakers are also wondering whether the new government in waiting can maintain the economic stability achieved by the caretaker government in six months.

The split mandate may hinder economic stability in the next few months, but experts believe the Special Investment Facilitation Council (SIFC) could play a crucial role in implementing politically unpopular economic policies.

Many experts anticipate the next government will seek a new IMF accord. This would require harsh economic decisions to stabilise the economy for at least three years.

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