Our heads bow down in shame, we beg for funds abroad: Pak PM

Pakistan’s Prime Minister Shehbaz Sharif, at a meeting with business leaders in Islamabad, said his country’s loan-seeking was now a matter of humiliation.

“We feel ashamed,” Sharif said, referring to himself and Army Chief Field Marshal Asim Munir. “We go around the world begging for money. Taking loans is a huge burden on our self-respect. Our heads bow down in shame,” the Pakistani PM said. “We cannot say no to many things they want us to do,” he added in what could be seen as a quid pro quo. He had made almost similar remarks about loans last year too.

The Pakistan PM claimed the condition of Pakistan’s foreign reserves had improved. “The current situation is that the reserves of the foreign exchange have almost doubled. But the loans of our friends and countries are included. But you know that the one who goes to take a loan, his head is bowed.”

Pakistan is in active discussions with the International Monetary Fund for a plan to support economic growth after applying strict policies to stabilise the country. Recently, the country received $1.2 billion from the IMF as part of its ongoing loan programme and a separate climate-related financing plan.

Despite the frustration, Sharif expressed gratitude toward “all-weather friend” China, as well as Saudi Arabia, the UAE and Qatar. These nations remain Islamabad’s primary lifelines, providing billions in rolled-over deposits and oil credit facilities to prevent a total balance-of-payments default. Under the China-Pakistan Economic Corridor (CPEC) and the Special Investment Facilitation Council (SIFC), these allies have pledged billions more in energy, mining and infrastructure investments.

China has rolled $4 billion projected for 2024-25 under the China-Pakistan Economic Corridor (CPEC), an $ 80-billion investment by Beijing on infrastructure and energy.

Saudi Arabia has extended deposits, deferred oil payments and pledged investments potentially worth up to $25 billion.