Pakistan Prime Minister Shehbaz Sharif on Friday candidly acknowledged the country’s deep financial distress, stating that repeatedly seeking foreign loans has come at the cost of national self-respect.
Addressing a ceremony in Islamabad that honoured prominent businessmen and exporters, Sharif said that countries forced to rely on external borrowing often have little choice but to comply with conditions imposed by lenders.
“When you go to seek loans, you have to keep your head bowed,” Sharif said, according to news agency PTI. “Sometimes, undue demands are made, and you are compelled to implement them even when there is no justification.”
The Pakistan Muslim League-N (PML-N) leader said he personally felt the weight of the situation while travelling abroad with Chief of Army Staff and Chief of Defence Forces Field Marshal Asim Munir to secure billions of dollars in financial assistance.
“We feel ashamed when Field Marshal Asim Munir and I go around the world begging for money,” Sharif said. “Taking loans is a huge burden on our self-respect. We cannot say no to many things they want us to do.”
Sharif also reflected on the economic situation his government inherited after coming to power in 2022, following the ouster of former prime minister Imran Khan. He described the economy at the time as extremely fragile, with ordinary citizens facing severe hardships.
Despite the challenges, the prime minister credited Pakistan’s “friendly countries” for standing by Islamabad during difficult times. “They did not disappoint us,” he said, while acknowledging the compromises that accompanied such support.
Pakistan’s reliance on foreign aid
Sharif’s remarks come as Pakistan remains engaged in ongoing negotiations with the International Monetary Fund (IMF) to support economic growth after implementing strict stabilisation measures.
Pakistan continues to rely heavily on financial assistance from countries including China, Saudi Arabia, the United Arab Emirates, and Qatar to manage its foreign exchange reserves and debt obligations.
China has rolled over billions of dollars in deposits, with approximately $4 billion expected during 2024–25, while the China-Pakistan Economic Corridor (CPEC) encompasses projects worth more than $60 billion. Saudi Arabia has extended a $3 billion deposit and provided a $1.2 billion oil facility, while the UAE has rolled over a $2 billion loan. Qatar, meanwhile, has signed agreements involving $3 billion in investments and LNG supplies.
