#Japan

By The Pak Global Pakistan

Japan’s Prime Minister Sanae Takaichi has pulled off a rare political feat in Tokyo’s often-turbulent corridors of power. By calling a snap election, she rolled the dice—and won big.

Her Liberal Democratic Party (LDP) has emerged with a commanding 316 seats in the 465-member lower house, handing Takaichi one of the strongest mandates any Japanese leader has enjoyed in recent years. The victory stands in sharp contrast to the revolving door of prime ministers that has defined Japanese politics for much of the past decade.

Now comes the harder part.

With political stability temporarily secured, attention has shifted to whether Takaichi can finally tackle the deep-rooted economic challenges that have long plagued the world’s fourth-largest economy. Japan continues to struggle with sluggish growth, a rapidly ageing and shrinking workforce, and public debt that is the highest among advanced economies.

For decades, successive governments have promised reform, yet bold structural changes have often stalled due to weak mandates or internal party resistance. Takaichi’s decisive majority changes that equation. Supporters argue she now has the political capital needed to push through long-delayed reforms in labour markets, innovation policy, defence-linked industries, and fiscal management.

Tomohiko Taniguchi, a policy adviser and former speechwriter to the late prime minister Shinzo Abe, believes the moment is critical—not just for Japan, but for other ageing nations watching closely.

“If successful, it will serve as a premier case study for ageing societies worldwide,” Taniguchi said, highlighting the global implications of Japan’s policy direction.

Markets are also paying attention. Investors see Takaichi’s win as a signal of continuity mixed with opportunity—continuity in the LDP’s pro-business stance, and opportunity for decisive action after years of economic drift. How she balances growth-oriented reforms with Japan’s massive debt burden will be closely scrutinised at home and abroad.

For now, Takaichi stands at a political high point. Whether she can translate electoral dominance into economic renewal remains the defining question. If she succeeds, her tenure could mark a turning point for Japan—and offer lessons for ageing economies across the globe.