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PAKISTAN: PM Imran Khan Faces Ouster As MQM Party Leaves Gov't

POLITICAL RISK

The Muttahida Qaumi Movement (Pakistan) (MQM-P) party has announced that it is leaving the governing coalition of Prime Minister Imran Khan ahead of a no confidence vote in the National Assembly. Losing the MQM-P sees Khan's Pakistan Tehreek-e-Insaf (PTI)-led coalition lose its majority, setting the stage for the vote of no confidence to go through, removing Khan from office.

  • The National Assembly begins debate on the motion on Thursday, with a vote to be taken within seven days. The loss of MQM-P sees the PTI and its allies holding 164 seats to the opposition's 177.
  • The vote comes amidst a burgeoning economic crisis in the country, with the gov't and the IMF at a deadlock in talks on the latter releasing another tranche of a USD6bn rescue package to shore up Pakistan's FX reserves.
  • Pakistan has become an increasingly prominent geopolitical actor in Asia. Closer relations with China as part of the latter's Belt & Road projects have seen concerns in India and the US grow. India risks being encircled by China and its allies, while the US sees an historic ally in the 'War on Terror' shifting further away from its sphere of influence (exemplified by PM Khan's visit to Russia on the day of the launch of the invasion of Ukraine and its abstention in UN vote condemning Russia's actions).

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