Daily Times

If wishes could be horses…

With the continuation of the rupee’s bullish run in the currency market (dollar changed hands for Rs 287 on Thursday), it would not be entirely fiddle-faddle for the common man to set high hopes. After all, the state’s crackdown on the illegal dollar trade appears to have pushed the proverbial genie back inside as reports swirl of sellers far surpassing buyers.

Perhaps, this historic moment could lay the foundation of what the optimists would call confidence in the home currency. Nevertheless, the grey marketers may have vanished for now, there’s a limit to the number of rabbits administrative actions can pull out of the hat. Heated and much-publicised raids on exchange companies and both Islamabad and Rawalpindi’s determination to have the business community on board may have eased some pressure but they cannot spell out the currency value. Unless and until Pakistan has a stable market and iron-clad reforms to balance out the foreign exchange supply and demand, no viable change should be expected.

It has long been established that the current market formula has failed and no more substantial growth can be achieved. We are living through a make-or-break moment wherein if those at the helm of the affairs realise the worth of reversing the tide against unsustainable trade deficits, low revenue collection and inappropriate government spending, the country might finally step out of the looming shadows. However, failure to do so would make the sustenance of the gains experienced by the Pakistani rupee in the last few weeks immensely difficult.

We have seen these brief spells of respite under the leadership of another esteemed finance minister whose wheelings and dealings set forth feel-good headlines that turned into terrifying nightmares. For the sake of our fragile finances, we at Daily Times can only hope and pray that the ongoing wave of confidence will prove to be something bigger than yet another quack solution. *