You ViewsVolume 12 Issue # 15

Economy: not so rosy

Economists have long been expressing concern over the dwindling exports, which have plummeted from $25bn in 2013 to $19.5bn expected this year, while imports are on the rise creating a large trade deficit. Additionally, remittances are on the decline while agriculture and manufacturing performance remains sluggish and a current account gap of $5.5bn is expected this year, which is almost, doubled the gap recorded in 2015-16.

The reserves already have declined from the peak of $24.5bn in early October 2016, to $ 21.8bn as of now and are expected to further erode in the months ahead. With all round negative economic indicators, the looming debt trap is becoming real. The debt-GDP ratio has already risen to 65pc, which exceeds the statutory ceiling stamped by parliament. How long can we live with the denial mode? “Darnomics” has miserably failed.

Arif Majeed

Karachi

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