Department of Public Administration

Name:Yashfa Younas

Roll no:2022-BPA-082

Class:BPA-1

Course title: Understanding Democracy

Submitted to:Mam Sehrish Haroon

Submission Date:18 Jan 2022

Assignment no.1
  Principal Agent Problem:
Principal:Owner.
Agent: A person hire to manage the asset .
The principal agent problem arises when there is a conflict of interest between the owner
(principal)and the person hired to manage the their asset(agent).The agent,who holds more
information about asset management,can make decisions that benefits him at expense of
principal’s welfare.

Principal Agent Problem in political scenario:

In the era of Imran Khan ,on 8 March 2022 the senior politicians demand for no confidence vote
against Imran Khan.All the political parties have joined forces and created an Alliance called the
PDM( Pakistan Democratic Movement). Overall inflation ,unemployment, powercut were the
issues used by opposition against Imran Khan. On 10 March Islamabad police arrested the
opposition politicans . The opposition politicans protested against government because of this
incident.The country’s situation was very critical. Pakistan’s army looked at this situation and
decided to be neutral .This angered Imran Khan .In his speech he said “Only animals remain
neutral”. On 28 March 2022, Imran Khan party's members started revolting against him and 24
politicans of PTI’s member ready to leave. Without their support Imran Khan’s government
would fall .The politicians who were with Imran Khan was disappointed . There is a gas shortage
in his constituency, he talked to prime minister about it but nothing was done to address it. On 20
March 2022 , Imran Khan gave them offer if all of them went back to PTI,they would be
forgiven. 22 members, the rebel MNA’s rejected the offer of forgiveness.On 22 March ,the MNA
Dr. Ramesh Raja said that the numbers of rebel politicans had increased and now 35 members
who wanted to leave the party. Ramesh Raja said that crimes against minorities are on a rise in
Pakistan.Ahmed Hussain said that the PM had stopped listening to people. Inflation is on a steep
rise in the country. There are more difficulties for masses. On 23 March, collation parties started
creating problems too. 3 collation parties started saying that they would stop supporting Imran
Khan government. PML-Q, MQM-P,BAP the 17 seats of these parties were in the National
assembly. Imran Khan started building conspiracy theories about foreign involvement. He said
that the America wanted to end-up my government and he said that all the opposition members
teamed up with America.On 3 April, the vote of confidence was supposed to be held in the
Assembly.On that day Imran Khan didn’t appear. The deputy speaker of national assembly taken
up the theory that because their is a foreign involvement so there can’t be a no confidence vote.
He invoked Article 5 of Pakistan constitution.It states that no confidence vote is illegal if there is
involvement of foreign powers. The speaker of National assembly wasn’t present because he was
not in favour of Article 5 ruling.The cheif justice of Pakistan’s Supreme Court took suo moto
cognizance of this matter and brought this matter to Supreme Court. On 7 April , 5 bench of
Supreme Court passed a unanimous verdict.They said that the Imran Khan’s action was
unconstitutional.They could not dismiss the no-confidence vote. The fresh elections were being
called by was declared null and void by them and the demand of the opposition parties for a vote
of confidence was held valid and give permission to be held . On 9 April the day of confidence
was held .The opposition party won by 174 votes and the government of Imran Khan was
dissolved.And new Prime minister Mian Muhammad Shehbaz Sharif was held.