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.