Pakistan, which seems to be under the euphoria of having its economic recovery termed a ‘good story’ by international analysts, must not miss out the multiple underlying critical factors threatening its economic sustainability.

“Pakistan is a good story,” Genna Lozovsky, chief investment officer at Sandglass Capital Management, was quoted by Barron’s as saying. “So good, it’s not risky enough for us anymore.” Another analyst, Alison Graham, chief investment officer, at frontier markets specialist Voltan Capital Management stated, “Everyone thought Pakistan would default along with Sri Lanka in 2023.”

On the side of optimism, there is a note of caution. A market analyst, while replying to a pointed question, cautioned: “conflict with India won’t likely knock Pakistan’s recovery off course” but the “country’s own shaky underpinnings might”. “Pakistan has been known for boom-and-bust cycles throughout its history,” according to Khaled Sellami, sovereign debt manager at Barings.

Behind this euphoria........

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