The fact that the election week has passed off relatively peacefully (although several people lost their lives and scores suffered injuries in election related violence, which unfortunately, is not something unusual for this country) and by and large the political parties have accepted the outcome, brought out a collective sigh of relief from the nation.
Nowhere was the sense of relief as conspicuous as in the Karachi stock market that had remained depressed for quite sometime. When the market opened after a long weekend on Tuesday, the index crossed the 15,000 mark, with overseas investors portfolio seeing fresh inflow of $47.358 million. This confidence reflected the strong expectations of political stability after the elections.
In these circumstances, any unusual delay in the formation of the government or holding of the first parliamentary session, may again give rise to uncertainty. Therefore, a peaceful transfer of power to a new government is of utmost importance.
The caretaker government's parting gift to the nation can be the approval of a corrective policy package, designed to address the fiscal imbalances. The choices that can be exercised now may become a compulsion later in the year. They could also save the honeymoon period of the new government.
Now that the political uncertainly hovering over the country for about a year is likely to come to an end soon, the hard facts of the economic situation must be spotlighted and analysed objectively and scientifically for laying down corrective policies. The political turmoil of the past fifteen months has badly affected the business climate and, consequently, investor confidence.
Despite all kinds of policy incentives, including freedom for complete repatriation of profits, the investor response has been a lot less than encouraging not for lack of interest but due to a poor law and order situation and deep political uncertainty. As a matter of fact, foreign investors have been watching with a lot of interest various prospects in different sectors, yet they have been reluctant to actually step in.
Peaceful culmination of the elections, is an important step forward, but from hereon starts another part of the country's journey through a difficult terrain. The parties that are likely to form a coalition government have yet to see eye-to-eye on two major issues, ie, restoration of the pre-Emergency judiciary and President Pervez Musharraf's position in the new scenario.
Which can set the new coalition partners on a collision course with the President or with one another. Unless, of course, the President somehow realises it is best for him to bow out gracefully rather than to trigger another political crisis that could generate political instability of a more serious nature along with severe economic hardship.
One can only hope the transfer of power will take place in a smooth fashion, and the contentious issues will be resolved without causing further turmoil. All concerned owe that to the progress and security of this nation.