Oct 9, 2007 0
Developments in Pakistan in recent days further the view for both insiders and outsiders that the country is a perplexing bowl of contradictions and political intrigue.
The Karachi Stock Exchange closed at all-time highs on Monday and Tuesday. Investor confidence boosted due to Pervez Musharraf’s re-election as president (pending the validation of his candidacy), which they associate with future political stability and continuity of pro-growth, liberal economic policies. Their sentiments might be valid in the mid-term, but the next three months, at the very least, will be a roller coaster period for the country—and Pakistan’s securities markets will likely not be as immune to the volatility as they have been before.
MUSHARRAF ESCAPES DANGER ONCE AGAIN
On the same day as the market rally, a helicopter escorting Musharraf to Kashmir crashed, killing four individuals. This was also the first day of work for Musharraf’s slated army successor, Ashfaq Kiyani, as vice chief of army staff. Though the president was never in any danger and there is no sign of foul play, the context eerily resembles the assassination of Zia-ul-Haq in 1988. The accident is a keen reminder that a single event of this sort can have a defining impact, but as with Zia’s demise, need not necessarily result in systemic change.
WAZIRISTAN ON FIRE
While investors are buoyant down south in Karachi, the country’s northwest has witnessed some of its most severe fighting between Pakistan’s army and local-foreign insurgents. According to the army, 45 troops and 150 insurgents have been killed in the Mir Ali area of North Waziristan. There have also been significant civilian casualties, with non-combatants fleeing the area. The government has been bombarding insurgents from the air with helicopter gunships and jets. The heightened use of air power markedly differs from the government’s previous ground-oriented strategy, which sought to avoid so-called collateral damage and earning further disfavor of locals. It suggests any number of the following:
- the army has decided its strong avoidance of civilian casualties has been too costly;
- patience on its side is wearing thin;
- there is significant external pressure on Islamabad to bring in decisive results before the winter;
- or a strategic and/or political (via Bhutto deal) window of opportunity has emerged to enable a forceful confrontation of militants.
Perhaps the army has opted for a Balochistan-like strategy, in which it would deliver strong, decisive blows to the insurgency (costing many innocent civilian lives) and follow up with a heavy infusion of development funds. Large scale, yet short-term violence would be complemented by a vast improvement in quality of life and incorporation/subsidization of local elites. In FATA, these funds would largely come from the 5-year $750 million US aid package and opportunities from its duty-free economic opportunity zone program, and would trickle down to the locals via notables with newly padded pockets.
FAZLUR RAHMAN AND THE FRACTURING OF THE MMA
A critical player in the political solution in FATA will be Maulana Fazlur Rahman, who, despite being in the political “opposition,” has proved to be almost as loyal to Musharraf as the Chaudhries. Fazlur Rahman is epitome of the “siyasi ulema” (political Islamic scholars) Abdur Rashid Ghazi lambasted on national television minutes before his demise in the Lal Masjid compound. The JUI-F should play a significant role in liaisoning between FATA notables and insurgents and the federal government/military. Its role in bringing a death blow to the MMA and APDM will not go unrewarded. The pending dissolution of the NWFP assembly will result in fresh provincial elections that might see MMA factions running on their own tickets, and a final tally that places the JUI-F in a stronger individual provincial position than before.
NATIONAL RECONCILIATION OR POLITICAL GIMMICK?
Recent comments by Chaudhry Shujaat Hussain, and to a lesser extent Shaukat Aziz, have sought to cast doubt on the government’s sincerity in its deal with Benazir Bhutto and her People’s Party. Aziz boasted of having divided and outsmarted the opposition, which is true, and Shujaat bluntly stated that the government has no intention of following through on its promises to Bhutto — and that it it will, in fact, get political cover from the Supreme Court ruling the National Reconciliation Ordinance invalid.
Shujaat’s comments should be taken with a grain (or bucket) of salt. One, Washington — Musharraf’s greatest benefactor — strongly wants the deal to go through fully. Two, Shujaat stands to lose most from the Bhutto-Musharraf deal. Musharraf’s presidency is essentially set (barring a Supreme Court rejection of his candidacy), but Shujaat’s party has to face off against Bhutto’s in the general elections. Images of him and his cousin appear frequently on Pakistani television screens, with a massive wave of advertisements on private channels (source of funding unclear) hailing the achievements of the governments of Musharraf (“Sub se pahlay Pakistan”) and Pervez Ellahi (“Para likha Punjab”). The Chaudhries may have reluctantly consented to a Bhutto-Musharraf deal, but they will show some feistiness to retain their dominance over Punjab and share of federal power.
The rejection of Shujaat’s statements by a Musharraf spokesperson suggests that the president will have to play a fine balancing act between PML-Q partisan and partner of Benazir. It’s the same kind of lack of partiality the Bush administration has sought to display in recent days vis-a-vis Pakistan (i.e. support for the country, not just one man–Musharraf). Should Musharraf alienate his PML-Q base, one might witness the party distancing itself from Musharraf and veering toward some sort of rapprochement, if not re-consolidation, with the PML-N.
NAWAZ’S NOVEMBER SURPRISE?
The PML-N offers little in political value without the presence of at least one Sharif brother in Pakistan. As a result, the Musharraf government was keen on keeping the former prime minister out of the country prior to his re-election. Since then, they have expressed resistance to his return prior to general-elections — though it is unclear as to whether this is a reflection of the government’s needs or the wishes of the Bhutto camp.
Nawaz is reportedly to return to London after Eid. If proven to be true, it will indicate that Sharif and family were informed of this upon return to Saudi, as Kulsoom Nawaz made such claims early at that point. Also it would prove to partially explain the Sharif family’s relative quietness in the past few weeks. From London, the Sharif brothers could return to Pakistan between November and post-elections in January. Reports suggest family members will trickle into Pakistan individually. Nawaz’s son Hassan has said his father will return to Pakistan between November 15 and 30. A pre-election return is more likely for Shahbaz Sharif. Odds of a Nawaz return pre-elections would multiply if he got another Supreme Court ruling in his favor. If Nawaz returns after the general elections, he could shake things up if discontent in the PML-Q and with others is high. Alternatively, his return could come after the candles have been blow out and the cake has been eaten.
POWER DISTRIBUTION POST-GENERAL ELECTIONS
Najam Sethi has stated that the Bhutto-Musharraf understanding will likely produce a PPP government (and Musharraf presidency) at the center, a PML-Q controlled Punjab with a significant PPP presence, a PPP-PML coalition government in NWFP and Balochistan, and a PPP-MQM coalition government in Sindh.
I think Sethi errs in only noting three political mouths (other than his own) Musharraf has to feed. There’s a four rewardee, the JUI-F. Fazlur Rahman’s deeds on behalf of Musharraf in recent weeks, as well as in the past four years, cannot simply be wishful lobbying. JUI-F will likely play an important role in addressing issues of militancy in NWFP, Balochistan, and FATA. Washington probably recognizes and supports this. Moreover, it makes little sense for JUI-F to have enabled Musharraf’s re-election under the current parliament and the fracture of its political alliance only to be punished with a loss of provincial power.
The JUI-F will likely be a part of the NWFP government at least for the same reasons the MQM will share power with the PPP in Sindh. Both were used to displace the previous ruling party, which necessitates a ‘soft landing’ for them — especially since they’re still useful. The PPP’s Sindh compromise is a concession for power at the national level, though its relations with the MQM will have its share of challenges. Sethi doesn’t seem to give much thought to a PML-Q presence at the national level. Mushahid Hussain and others with the party have proposed the idea of a national unity government. While this remains possible, strong animosities between PML-Q stalwarts and the PPP, combined with Benazir Bhutto’s compromises vis-a-vis Musharraf, will likely prohibit her from entertaining such an idea. Why would she accept a prime ministership already diluted by the troika?
The general elections will be held under the rule of a caretaker government. At this point, there is only pure speculation as to who will be the interim prime minister. Candidates include: Jehangir Karamat, Ishrat Hussain, and Hamid Nasir Chattha. Tariq Aziz and Shujaat Hussain have been tasked with arranging for the interim set-up, but clearly Benazir will have significant input in these matters as they will factor significantly in the outcome of the elections (i.e. free and/or favorable).