Flash in the pan?

THE sceptics may have their doubts about a ‘miracle turnaround’ in Pakistan’s fortunes after the government grabbed a last-minute stand-by loan from the IMF, but the markets have been quick this week to cash in on the euphoria. The dollar fell sharply once trading resumed after the holidays, collapsing like a punctured balloon; stock market activity heated up like it had not in years, with speculative investors eager to get their hands on whatever they could; gold prices registered a sharp decline; and fresh inflation readings — although unrelated to the IMF deal announcement — indicated that the pressures that had built up within the economy might finally be showing signs of easing. Had Pakistan really stumbled back onto the path to prosperity over the course of a long weekend thanks to just one loan deal? That’s what the government, at least, would have us believe. Experts and analysts, on the other hand, are still warning of the underlying risks imperilling Pakistan’s economic prosperity. Global credit ratings agencies Moody’s and Fitch on Monday reminded the world that Islamabad still needs to pay back $25bn to creditors this fiscal year