From economic turmoil to Nawaz’s return, a tumultuous 2023 for Pakistan

The year 2023 draws to a close, with Pakistan witnessing significant developments that will change the course of South Asian nation in times to come.

It saw uncertainty in Pakistan attributable to economic turmoil and volatile politics. Pakistan’s institutional imbalance was transpicuous, specifically in the case of date for general elections – a matter that settled after the Supreme Court acted as ‘forcing factor’.

As the country heads into 2024, we have gathered some developments that not only shaped headlines during the year 2023, but impacted Pakistan’s situation.

Economic Turmoil

Pakistan’s resilient economy was stuck, once again, between a rock and a hard place. The high political drama and global geopolitical crisis brought it to a crossroads.

During this year, the Pakistani rupee hit an all-time low, crossing the 300-mark against the US dollar in August. Moreover, the foreign exchange reserves held by State Bank of Pakistan (SPB) also dropped to an alarming level — at $3.1 billion in January 2023.

The country also struggled to unlock the crucial funding from the International Monetary Fund (IMF) and, in this regard, took similarly criticised steps.

The SBP hiked interest rate by 300bps to 22 per cent — the highest level since October 1996, while the government introduces taxes on gas and electricity.  Pakistan Consumer Price Index (CPI) growth reached an all-time high of 38pc in May.

After such adversity, Pakistan finally secured staff-level agreement with the IMF on a $3 billion “nine-month Stand-by Arrangement (SBA)”. The executive board of the IMF will finally meet on January 11, 2024, to consider the final approval to hand out the next $700 million tranche.

May 9 – “dark chapter”

The most politically significant development of the outgoing year was the events that unfolded from May 9 to May 11 – which Pakistan’s military described as a “dark chapter”. The series of events were part of the irrevocable breakdown of Imran Khan’s relations with the military establishment.

On May 9, the country saw the arrest of “popular” leader and PTI founder Imran Khan – who was accused of corruption, unlawfully selling gifts from foreign dignitaries and leaking state secrets.

When violent protests broke out over Imran Khan’s arrest, PTI supporters attacked and vandalised military installations and government buildings, prominently the GHQ and the Lahore corps commander’s official residence.

Even the memorials of martyrs were not spared. The country never witnessed such fury against the state institution – which shaken the state to its core.

Later in August, Imran Khan was re-arrested after Islamabad High Court convicted him in a corruption case that held him guilty of illegally selling state gifts. The conviction banned PTI founder from contesting elections and holding public office for five years.

Over a hundred other cases were registered against him. A sweeping crackdown saw arrests of PTI leaders and activists while some were coerced into abandoning the party.

The unfortunate Jaranwala  

This year, Pakistan once again witnessed another disturbing episode of anti-Christian violence over “unproven” blasphemy allegations, when a large crowd unleashed chaos in Jaranwala on August 16.

A violent mob of hundreds vandalised and burned down 19 churches and dozens of Christian homes in the city’s various neighbourhoods and attacked the office of the local assistant commissioner.

The cause of the outbreak of violent events was accusations of blasphemy triggered by the discovery of desecrated Quran pages near the home of two Christian brothers.

Words fail me as I write this. We, Bishops, Priests and lay people are deeply pained and distressed at the Jaranwala incident in the Faisalabad District in Pakistan. A church building is being burnt as I type this message. Bibles have been desecrated and Christians have been… pic.twitter.com/xruE83NPXL

— Bishop Azad Marshall (@BishopAzadM) August 16, 2023

Video clips and photos shared on social media showed flames and smoke billowing from some church buildings, people setting fire to furniture and removing the symbol of the crucifix from a church building.

The mob rampage targeting Christians in Jaranwala should serve as a critical opportunity for the nation to look inwards, honestly diagnose the disease, and remove the extremism from society.

Nawaz Sharif’s return

This year, the nation witnessed a return that they all were waiting for – three-time premier and PML-N supremo Nawaz Sharif. The former prime minister ended a four-year self-imposed exile to lead his party in the general elections.

At the homecoming rally in Lahore, Nawaz said he has “no wish for revenge” and stressed on beginning a “new journey” towards growth.

Nawaz Sharif has once again pulled off a political resurrection after seemingly being written off from politics for the second time. Just like he did in 1999, when Gen Pervez Musharraf sent him packing to Saudi Arabia.

The PML-N is again gearing up to contest the 2024 elections from the Mansehra region of Khyber-Pakhtunkhwa and would also contest from Lahore.

Surge in terrorist attacks

Terrorism has been the principal threat to the people of Pakistan, with this year at least 271 militant attacks took place during the first half of 2023, resulting in the loss of 389 lives and injuring 656 individuals.

The numbers were revealed by an independent think tank Pakistan Institute for Conflict and Security Studies (PICSS).

Since the Taliban takeover of Kabul in 2021, there has been a 73 per cent increase in terrorist incidents in Pakistan as compared to the corresponding period preceding the Taliban’s seizure of power.

Militant attacks in Pakistan surged since 2022 when a ceasefire broke down between the government and the Tehreek-e-Taliban Pakistan (TTP). The banned outfit continues to have space in Afghanistan to plan and carry out attacks in Pakistan.

The suicide attack on a Rabiul Awwal congregation in the Balochistan town left almost 60 people dead. At least five people were killed in a targeted attack in KP on the same day, swelling the number of fatalities.

The return of terrorism presents a most serious challenge to a nation mired in multiple crises.