Pakistan Prime Minister Shehbaz Sharif has openly expressed his discomfort and sense of humiliation over the country’s worsening economic situation, admitting that repeatedly seeking financial help from other nations has taken a toll on Pakistan’s dignity. He made these remarks while addressing a ceremony in Islamabad, where the country’s leading businessmen and exporters were being honoured for their contributions to the economy.

During his speech, Sharif said that turning to foreign countries for loans has forced Pakistan to make compromises at the “cost of self-respect”, a reality he described as deeply painful. He explained the emotional weight of these efforts by stating, “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,” as quoted by PTI. His words reflected not just political concern, but also personal unease over the situation.

The leader of the Pakistan Muslim League (Nawaz) also spoke about the state of the economy when his party returned to power in 2022, following the removal of former prime minister Imran Khan. Recalling those early days, Sharif said, “When we assumed office, the economic situation was extremely fragile, and the common man faced severe hardships,” highlighting how ordinary citizens were already struggling under inflation, unemployment, and rising living costs.

Sharif acknowledged that Pakistan survived those difficult moments largely due to the backing of what he repeatedly referred to as “friendly countries”. He revealed that alongside the Chief of Army Staff and Chief of Defence Forces, Asim Munir, he personally met leaders from multiple nations to request loans amounting to billions of dollars. According to him, these visits were necessary but humiliating, as financial dependence often comes with conditions.

Describing the pressure that accompanies borrowing, Sharif said, “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,” underlining how external demands can influence national decisions. He went on to make one of his strongest admissions yet, saying, “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.” These remarks painted a stark picture of the emotional and political cost of Pakistan’s financial dependence.

Pakistan’s heavy dependence on external financial support

Sharif’s comments come at a time when Pakistan is holding active discussions with the International Monetary Fund to secure a programme aimed at supporting economic growth. These talks are taking place after the government implemented strict measures to stabilise the economy, steps that have placed additional strain on the public but were seen as unavoidable.

Pakistan continues to rely heavily on financial assistance from countries such as China, Saudi Arabia, the United Arab Emirates, and Qatar to manage its foreign exchange reserves and meet debt obligations. Alongside the IMF, these nations regularly provide loans and extend rollovers to help the cash-strapped country avoid default.

China has rolled over billions of dollars in deposits, with $4 billion expected in 2024–25, while the China-Pakistan Economic Corridor includes projects worth more than $60 billion. Saudi Arabia has extended a $3 billion deposit and offered a $1.2 billion oil facility. The UAE has rolled over a $2 billion loan, and Qatar has signed agreements involving $3 billion in investments and LNG supplies, providing crucial breathing room for Pakistan’s struggling economy.

At present, Pakistan is once again seeking additional IMF support after enforcing tough policies to keep the economy afloat. The IMF recently provided Pakistan with Rs 1.2 billion under one programme, along with separate climate-related financing. This funding has helped the country repay portions of its old debt and strengthen its foreign exchange reserves.

Sharif also informed that a team led by Finance Minister Muhammad Aurangzeb recently met IMF officials. According to him, the team tried to convince the lenders that the Pakistani economy is currently ‘stable’, while stressing that future efforts must focus on reducing poverty and creating employment opportunities for the population.