Islamabad, Jan 31: Pakistan Prime Minister Shehbaz Sharif has openly expressed embarrassment over the country’s dependence on foreign loans, saying repeated appeals for financial assistance have damaged national self-respect.
Addressing exporters and business leaders at an event in Islamabad, Sharif said that seeking loans alongside Army Chief Field Marshal Asim Munir was a humiliating experience.
“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,” Sharif said.
His remarks come as Pakistan continues to seek IMF support and debt rollovers amid a deepening economic crisis.
Sharif acknowledged the support extended by China, Saudi Arabia, the UAE and Qatar, calling them “all-weather friends” who have stood by Pakistan during difficult times. These countries currently form the backbone of Pakistan’s financial stability through deposits, loans, oil facilities and investment commitments.
China has rolled over billions of dollars in deposits and remains a key partner through the China-Pakistan Economic Corridor (CPEC), which has seen over $60 billion in energy and infrastructure investments. Saudi Arabia has extended deposits, deferred oil payments and pledged investments across mining, agriculture and IT. The UAE and Qatar have also rolled over loans and committed funds in sectors such as energy, ports, aviation and hospitality.
Sharif also flagged rising poverty, unemployment and the lack of progress in research and innovation. Pakistan is facing a severe socioeconomic crisis, with poverty estimated to affect nearly 45 percent of the population, while unemployment stands at around 7.1 percent, leaving over eight million people jobless.
Pakistan’s public debt has crossed Rs 76 trillion as of March 2025, nearly doubling in four years. The country is currently on its 23rd IMF programme, with analysts warning that without deep structural reforms, fresh loans are being used largely to service existing debt rather than drive growth.
Sharif’s candid admission underscores the structural fragility of Pakistan’s economy and highlights the growing limits of its long-standing reliance on foreign assistance to manage recurring financial crises.
