Country Update, 1-May-2008.

This article offers information on Pakistan's political risk. Particular focus is given to the partnership of the Pakistani Peoples Party (PPP) and the Pakistani Muslim League Nawaz Group (PML-N), along with threats to the unity of the coalition. The key to achieving lasting peace in the northwest is the government's willingness and ability to bring economic development to the region. Economic woes facing the country include expanding budget deficit, a growing current account shortfall, and shrinking foreign exchange reserves.