Pakistan’s Prime Minister Shehbaz Sharif on Saturday openly expressed displeasure over his country’s heavy reliance on foreign loans, saying that asking for financial assistance erodes national self-respect and is a source of humiliation for officials, including Army Chief Asim Munir.
Speaking to leading exporters and business figures at an Islamabad event, Sharif highlighted how mounting debt weighs on Pakistan’s national dignity and stressed the need to pursue alternative economic approaches.
Sharif said, “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 can not say NO to many thigs they want us to do.”
Sharif’s acknowledgement of “begging” for loans shows the Pakistan’s economic struggles and dependence on international assistance. This statement by Pak PM comes amid country’s recent outreach to IMF for support and debt rollovers.
He also praised “all-weather friend” China, along with Saudi Arabia, the UAE, and Qatar, which have supported Pakistan through thick and thins, whatever the circumstance was.
Pakistan’s economic lifeline are mostly dependent on above mentioned countries, which provide critical assistance to stabilise foreign exchange reserves and avoid balance-of-payment crisis.
China has extended the rollover of billions of dollars in secure deposits to help Pakistan manage its debt repayments, with around $4 billion expected in 2024–25. The China-Pakistan Economic Corridor (CPEC) remains a central pillar, encompassing more than $60 billion in investments across energy and infrastructure sectors.
Meanwhile, Saudi Arabia offered a $3 billion deposit with the State Bank of Pakistan in December 2024 and given a deferred oil payment facility of approx. $1.2 billion in 2025. Riyadh has vowed major investments in mining, agriculture, and IT, with projected plan worth of $5-$25 billion.
In early 2025, the UAE rolled over a $2 billion loan and pledged $10–25 billion for Pakistan’s energy, ports, and wastewater sectors. Qatar signed a $3 billion investment protocol in aviation, agriculture, and hospitality, while also remaining a major LNG supplier.
All of these countries are important for Pakistan’s economic stability, with investments and aid coming through frameworks like the China-Pakistan Economic Corridor (CPEC) and the Special Investment Facilitation council (SIFC).
Pak PM also flagged concerns regarding rising poverty and unemployment, and regretted the lack of possible development in R&D and innovation.
Pakistan is suffering from severe socioeconomic crisis with poverty rates expected to have risen towards 45% of the population, worsened by inflation and floods.
Unemployment in the country has jumped to around 7.1% with over wight million citizens jobless, while textiles and commodities remain major source for export.
As per recent estimates up to 45% of Pakistan’s population lives under the poverty line, which is a rise from 21.9% in 2018. Extreme poverty has increased from 4.9% to 16.5%, given 2022 floods, inflation, and macroeconomic instability.
However, Pakistan continues to invest in “perception management” and lobbying, but not taking measures to help public to get to get rid of the effect of record-breaking inflation.
