Pakistan Prime Minister Shehbaz Sharif on Friday said that those who go to seek loans have to “keep their head bowed down,” acknowledging the financial hardships Islamabad has faced in recent times.
Speaking at a ceremony in Islamabad honouring the country's eminent businessmen and exporters, Sharif said that seeking foreign loans has forced Pakistan to make compromises at the “cost of self-respect”.
"How should I tell the way we requested friendly countries for loans? The friendly countries didn't disappoint us. But the one who goes to seek a loan, his head is bowed down,” news agency PTI quoted Sharif as saying.
The Pakistan Muslim League (Nawaz) leader touched on the country's economic condition when his party came to power in 2022, following Imran Khan's ouster.
"When we assumed office, the economic situation was extremely fragile, and the common man faced severe hardships,” he said.
Sharif credited “friendly countries” for fully supporting Pakistan during difficult times, and, together with the Chief of Army Staff and Chief of Defence Forces, Field Marshal Asim Munir, he had met leaders of several countries to seek loans worth billions of dollars.
{{/usCountry}}Sharif credited “friendly countries” for fully supporting Pakistan during difficult times, and, together with the Chief of Army Staff and Chief of Defence Forces, Field Marshal Asim Munir, he had met leaders of several countries to seek loans worth billions of dollars.
{{/usCountry}}"When you go seeking loans, you have to pay the price at the cost of your self-respect. You have to compromise... Sometimes, undue demand may come up, and you have to implement it even when there is no reason to fulfil it," he said, adding, “We feel ashamed when Field Marshal Asim Munir and I go around the world begging for money. Taking loans is a huge burden on our self-respect. Our heads bow down in shame. We cannot say no to many things they want us to do.”
Pakistan’s reliance on foreign aid
Shehbaz Sharif’s remarks come as Pakistan is in active discussions with the IMF on a plan to support economic growth, following the implementation of strict policies to stabilise the country.
Pakistan heavily relies on financial aid from several countries, including China, Saudi Arabia, the UAE, and Qatar, to manage its foreign exchange reserves and debt. These nations, along with the IMF, provide regular loans and rollovers to the cash-strapped nation.
China has rolled over billions in deposits, with $4 billion expected in 2024–25. The China-Pakistan Economic Corridor includes over $60 billion in projects. Saudi Arabia extended a $3 billion deposit and offered a $1.2 billion oil facility. The UAE rolled over a $2 billion loan, while Qatar signed agreements for $3 billion in investments and LNG supplies.