If Nawaz survives

Dark clouds are hovering over Nawaz Sharif's government. But, it is still fair to ask: how would the economy fare if Nawaz survives the political onslaught. Left bruised and scarred from the political fight, would he approach, or avoid the difficult but unattended economic issues? A few plausible scenarios are described here.
One is: where Nawaz would barely subsist. It is the situation where his government comes out so weak of the political standoff that it finds solace in preserving the status quo. A government with diminished political capital is akin to a person with broken limbs. It won't be a surprise if Nawaz gives up against the odds, loses any appetite he had, and focuses instead on term completion, with economy running on auto-pilot.
Such a situation will embolden and strengthen special interest groups, who would make sure that they resist the Sharif's attempt to do anything consequential when it comes to contentious issues like privatisation, governance reforms and cross-border trade. Hostile conditions would mean that Nawaz's famed mojo may only be restricted to a few power projects, a couple of Metro Bus projects, privatisation of relatively better performing power Discos, with hard sales like Pakistan Steel Mill and PIA hitting the backburner again.
The second scenario is where Nawaz survives, but is intent to thrive. He will come out all guns blazing. Chastened by the opposition and hastened by the wasted opportunities, Nawaz may decide to apply the full pressure and take head on tough issues like privatisation, taxation and regional trade. Seeing Nawaz focused, on getting things done, would be a feel-good factor for markets and businesses.
In fact if this scenario emerges by the end of this week or whenever the dust settles, then it would give a strong and positive signal to potential investors, local and foreign and, accordingly, now-oversold stock market will shoot upwards.
A third scenario is where the Nawaz government would keep doing what it has been up to thus far. After all, protests are not directly related to economic issues. In that case, it will be business as usual, with no urgency from the government to change its course or motivation to go any extra mile and delight the public.
In this case, regardless of Nawazs penchant for an economic fight, macro-economy will remain in good shape. Favourable global economic conditions will continue to lend support to inflows like remittances and portfolio investment. The multi-billion dollar Chinese projects will make progress because of their geo-strategic impact. Bilateral support from friendly countries like Saudi Arabia may also remain intact. If fiscal space and low inflation lead to low interest rate environment, private sector credit may further improve.
Its hard to say which way the pendulum will swing. But, suffice to say that Nawaz's economic agenda for rest of the term will depend on his economic disposition and the political stability around him. But before that, he must pull things back from the brink!