Pakistan Prime Minister Shehbaz Sharif has openly admitted that his government has been travelling around the world to seek financial help in order to keep the country’s economy stable. Speaking to leading exporters in Islamabad, Sharif described the serious economic problems Pakistan is facing and said the situation has become painful for the country’s leadership.
Sharif said both he and Army Chief Field Marshal Asim Munir have repeatedly visited friendly nations to ask for loans and financial support. According to him, this situation is not only economically difficult but also emotionally and politically embarrassing for the country. He stated that seeking loans forces Pakistan to compromise in some areas and affects national pride.
The Prime Minister said Pakistan’s foreign exchange reserves have improved in recent months, but much of the increase comes from borrowed money rather than strong economic growth. He explained that reserves may look stronger on paper, but loans from friendly countries are behind this improvement.
Sharif told the gathering that whenever a country asks for loans, it does so with lowered dignity. He said both he and the army chief feel ashamed when they must request financial assistance abroad. He added that loans come with expectations and conditions, and sometimes Pakistan cannot refuse certain demands due to its financial dependence.
Despite expressing discomfort about borrowing, Sharif acknowledged the support Pakistan has received from friendly countries. He thanked China, Saudi Arabia, the United Arab Emirates, and Qatar for helping Pakistan avoid a financial crisis.
China continues to play a major role in Pakistan’s economy through the China-Pakistan Economic Corridor (CPEC), a large infrastructure and investment project worth around 60 billion dollars. China has also rolled over deposits and provided financial support that helped stabilize Pakistan’s economy.
Saudi Arabia has extended a deposit of three billion dollars and also provided an oil facility worth around 1.2 billion dollars to help Pakistan manage energy needs without immediate payment pressure.
The United Arab Emirates renewed a two-billion-dollar loan, while Qatar has agreed to invest three billion dollars in Pakistan along with providing liquefied natural gas supplies. These steps have helped Pakistan maintain its foreign exchange reserves and avoid a balance-of-payments crisis.
Sharif described China as Pakistan’s “all-weather friend” and said Gulf nations have stood by Pakistan during difficult economic times. He acknowledged that without such assistance, Pakistan’s economy would have faced even greater challenges.
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Even with foreign support, Pakistan continues to face serious domestic economic problems. Sharif admitted that poverty levels remain high, affecting nearly 45 percent of the population. Around 16.5 percent of people live in extreme poverty, struggling to meet basic needs.
Unemployment is another major concern. The jobless rate stands at about 7.1 percent, meaning more than eight million people are without work. Rising prices and slow economic growth have also made daily life difficult for many citizens.
Pakistan’s public debt has crossed Rs 76,000 billion, placing heavy pressure on the government’s finances. Because of this debt burden, Pakistan often depends on assistance from the International Monetary Fund (IMF) and loans from friendly countries to stabilize its economy.
Sharif also pointed out that Pakistan is facing challenges in innovation, industrial growth, and exports. Weak productivity and slow reforms have limited economic progress, making it harder to generate employment and income.
The Prime Minister stressed that Pakistan must now focus on strengthening domestic industries, increasing exports, and reducing dependence on loans. He urged exporters and business leaders to help grow the economy so that the country can stand on its own feet.
Sharif’s remarks came at a time when Pakistan continues discussions with the IMF regarding policies to stabilize the economy and encourage growth. IMF programs often involve economic reforms, subsidy reductions, and fiscal discipline measures, which sometimes lead to public criticism due to rising living costs.
The Prime Minister admitted that balancing economic needs with national pride is becoming increasingly difficult. While loans help the country avoid immediate crisis, they also create long-term pressure and obligations.
Sharif concluded by saying Pakistan must work hard to escape the cycle of borrowing and build a stronger, self-reliant economy. He said the country cannot continue depending on foreign loans forever and must take tough decisions to secure economic independence in the future.
His statement has sparked debate within Pakistan about economic policies, governance, and the urgent need for long-term reforms to reduce reliance on foreign assistance and restore financial stability.
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