Trade deficit of Pakistan last 5 years that led to a debt trap

Pakistan have found themselves in a debt trap because of their rising national debt and expanding trade deficit.

During the Trump presidency, the phrase "debt-trap diplomacy" first appeared in US government documents.

Chinese Loan

China's influence over Pakistan's economy has significantly expanded in recent years as a result of Beijing becoming Islamabad's largest creditor.

Definition of Debt-Trap

A debt trap occurs when a creditor country provides an excessive amount of loan to a borrower in exchange for economic or political concessions.

Pakistan must follow in China's footsteps by growing exports and increasing national income through Gross Capital Formation.