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Pakistan PM Shehbaz Sharif has admitted that he and the army chief have travelled abroad seeking financial help to keep the economy afloat. Calling the experience “shameful,” he said Pakistan’s growing reserves are built largely on borrowed money.
Sharif described the challenges faced by his govt in managing economy
New Delhi: Pakistan Prime Minister Shehbaz Sharif has made a rare and candid admission about the country’s financial struggles, acknowledging that he and Army Chief Field Marshal Asim Munir have been travelling overseas to seek financial assistance to prevent an economic collapse.
Addressing leading Pakistani exporters in Islamabad on Friday night, Sharif said the experience of repeatedly asking for loans has taken a toll on both personal dignity and national pride.
Sharif admitted that Pakistan’s recent improvement in foreign exchange reserves is largely driven by borrowed money rather than sustainable economic growth. While reserves have nearly doubled, he stressed that the increase includes deposits and loans from friendly nations.
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“When someone goes to take a loan, his head is bowed,” Sharif said, underlining the uncomfortable reality of Pakistan’s dependence on external financing. He noted that although the funds help stabilise the economy, they come at the cost of autonomy and long-term confidence.
Speaking emotionally, the prime minister said that repeatedly approaching other countries for financial support has become a source of embarrassment for the nation. He admitted that Pakistan is often unable to refuse conditions attached to financial assistance.
“We feel ashamed when the army chief and I go around the world begging for money,” Sharif said, adding that mounting debt has placed severe pressure on Pakistan’s sense of self-respect and decision-making freedom.
Sharif acknowledged the role of key allies in preventing a balance-of-payments crisis. China, described by the prime minister as an “all-weather friend,” has rolled over billions of dollars in deposits and continues investments under the China-Pakistan Economic Corridor.
Saudi Arabia has provided a $3 billion deposit and extended a $1.2 billion oil facility, while the United Arab Emirates renewed a $2 billion loan. Qatar has committed $3 billion in investments and LNG supplies. Sharif said these measures have helped stabilise Pakistan’s currency reserves during a critical period.
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Despite external support, Pakistan continues to grapple with severe internal problems. Around 45% of the population lives in poverty, with nearly 16.5% facing extreme deprivation. The unemployment rate stands at over 7%, affecting more than eight million people.
Public debt has crossed Rs 76,000 billion, keeping the country heavily reliant on IMF programmes and foreign lenders. Sharif also pointed to weak innovation, low productivity, and economic stagnation as major hurdles to recovery.
The prime minister’s remarks come as Pakistan remains in negotiations with the International Monetary Fund over reforms aimed at stabilising the economy. Sharif said the government is caught between financial necessity and the urgent need to restore national dignity through long-term economic self-reliance.
