Pakistan, May 26 -- At a glance, the numbers appear encouraging: inflation slowing to an unbelievable 0.3 per cent in April, the current account deficit narrowing, and the rupee holding steady. With IMF delegations satisfied with the progress and Gulf-backed assurances trickling in, the government can reasonably claim that Pakistan is no longer on the precipice of default.

But temporary relief cannot, under any circumstances, be mistaken for reform. And the deeper, structural crises facing Pakistan's economy remain dangerously unresolved.

Chief among them is the energy sector, long a drag on fiscal stability and industrial growth. Circular debt has swelled to Rs2.6 trillion. Decades of misaligned incentives, operational inefficiencies, ...