After the 2022 Pakistan economic crisis led to political instability, the struggle was also joined by several dissident members of Khan's own party, Pakistan Tehreek-e-Insaf (PTI). On 10 April 2022, the coalition succeeded in ousting Khan through a no-confidence motion, after which the Pakistan Democratic Movement formed its own government, choosing the opposition leader Shehbaz Sharif as the country's prime minister.[8]
The new government was faced with multiple economic challenges upon formation, mainly relating to the completion of the $6 billion IMF bailout program approved during Imran Khan's tenure. The government decided not to remove fuel and power subsidies imposed by Imran Khan during the last days of his tenure, viewing such a move as politically damaging to the new government. This was opposed by the Finance Ministry on the grounds that it could jeopardize the IMF program and increase the fiscal deficit.[9]
PM's Kissan Package
Following wide-spread flooding and farmer protests lead by the Pakistan Kissan Ittehad[10] in 2022, Shehbaz Sharif announced a Rs. 1.8 trillion Kisan Package.[11] The package included the following measures;[12]
Rs. 5 billion for flood-hit farmer loans
Produce Index Unit (PIU) value increased to Rs. 10,000 for agro-loans
Rs. 10 billion for agricultural small and medium enterprises (SMEs)
GoP import program of 5-year-old, second-hand tractors
50% rebate on duty for importing 5-year-old, second-hand tractors
36% rebate on duty for importing 3-year-old tractors
Markup Waiver Scheme (MWS): subsistence farmers with "outstanding" debts of up to Rs 500,000 per loan had their mark-up's waived. Under the MWS banks waived Rs 2.96 billion.
GoP Markup Subsidy Scheme (GMSS): Rs. 10.05 billion outlaid to 43,465 borrowers with debts of Rs. 500,000
Interest Free Loans and Risk Sharing Scheme for Landless Farmers (IF&RSLF): Upton Rs. 200,000 in interest free loans, Rs. 5.8 billion outlaid to 47,425 borrowers.
Markup Subsidy and Risk Sharing Scheme for Farm Mechanization (MSRSSFM): Loans up to Rs. 30 million for purchase of "tractors, threshers, combined harvesters, planters etc." The scheme was extended by Govt to June 30, 2024.
PM’s Youth Business and Agriculture Loan Scheme (PMYB&ALS): Loan Scheme, Rs 26.8 billion disbursed by March 31, 2024
Despite a subsidy on DAP and Urea fertilizers, an inter-ministerial meeting of the Kissan Package found that their use had declined due to continued increases in prices and decreases in supply.[17]
Foreign policy
The government immediately sought to mend ties with the United States that were strained by Imran Khan's Lettergate controversy, despite Washington's increasing prioritization of India over Pakistan in its foreign policy.[18] Experts believed the goal of this was to balance relations between the US and China, while also prioritising CPEC-related cooperation with China.[19] However, Pakistan has only received a limited response from the Biden administration,[20] the United States and India have also demanded that Pakistan stop cross-border terrorist activities.[21]
His second tenure saw Pakistan host the 2024 SCO summit, where Shehbaz held talks on regional development and cooperation with India and other SCO members.[25] He also attempted to ban the Pakistan Tehreek-e-Insaf (PTI), the largest political party in Pakistan.[26][27] His government saw the initiation of Operation Azm-e-Istehkam and attempted to pass new constitutional amendments making changes to the Judiciary of Pakistan, though opposition groups alleged that their members were abducted and 'coercive tactics' were used by his government to attempt to pass the amendments.[28] In Febua
Protests have continued to proliferate in Pakistan, as economic conditions and political pressures continue. IMF conditions led to increases in tax rates, while purchasing power declined in tandem with stagnant wage growth, outpaced by inflation.[29][30]
Shehbaz’s administration prioritized banning the social media platform Twitter (X), and installed an internet firewall. The internet firewall was created by the government in order to block content it deems propaganda. The firewall was widely criticized for censorship. Furthermore, the internet firewall project was estimated to cost $300 Million. The firewall resulted in the internet worsening in Pakistan and negatively affecting businesses.[31][32][33]
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