ISLAMABAD – Pakistan is entering into a debt trap, warned Forbes.

Rising indebtedness comes at a time when Pakistan is already living beyondits means, as evidenced by persistent current account deficits, governmentdebt, and external debt. Pakistan recorded a Current Account deficit of3867 USD million in the fourth quarter of 2017, according to Tradingeconomics.com.

The country’s Current Account averaged -587.18 USD million from 1976 until2017, reaching an all-time high of 1418 USD million in the Q3 of 2002 and arecord low of -4419 USD million in the Q2 of 2017.

Pakistan accumulated a government debt equivalent to 67.20% of thecountry’s Gross Domestic Product in 2017. The country’s government debt toGDP averaged 69.30% from 1994 until 2017, reaching an all-time high of87.90% in 2001 and a record low of 56.40% in 2007.

External Debt in Pakistan jumped to 88891 USD million in the fourth quarterof 2017 from 85052 USD million in the third quarter of 2017.

The country’s external debt averaged 53029.34 USD Million from 2002 until2017, reaching an all-time high of 88891 USD million in the fourth quarterof 2017 and a record low of 33172 USD million in the third quarter of 2004.

Meanwhile, Pakistan’s foreign currency reserves and foreign capital flowsare falling, making it increasing likely that Pakistan will seek toreschedule its debt.