The writer is former head of Citigroup’s emerging markets investments and author of ‘The Gathering Storm’

Pakistan is in political and economic chaos. Its most populous province, Punjab, was without a government for almost a month because the governor, who was appointed by former prime minister Imran Khan, had refused to administer an oath to the newly elected chief minister of the province. The president, Arif Alvi, a member of Khan’s party, is backing the Punjab governor’s actions.

Meanwhile, Pakistan’s foreign exchange reserves have fallen sharply in the past two months. The new government hopes to stop the bleeding with an enhanced IMF package and more short-term loans from China and Saudi Arabia. Supplies of electricity to households and industry have been cut as the cash-strapped country can no longer afford to buy coal or natural gas from overseas to fuel its power plants.