Pak PM Shehbaz Sharif Admits Shame Over Begging for Foreign Loans

Addressing leading exporters and business leaders at an event in Islamabad, Sharif underlined the burden of debt on Pakistan’s dignity and stressed the urgent need for alternative economic strategies.

“Marshal Asım Münir and I feel ashamed when we travel around the world begging for money. Getting a loan is a huge burden on our self-esteem. Our heads hang down in shame. We cannot say NO to many things they want us to do,” Şerif said, as quoted by local broadcaster A1tv.

Sharif’s remarks come as Pakistan continues to seek IMF support and debt servicing amid deepening economic stress. He acknowledged that the country’s dependence on international aid reflected serious structural weaknesses.

The Prime Minister praised Pakistan’s “all-weather friend” China, as well as Saudi Arabia, the UAE and Qatar, for supporting Islamabad in difficult times regardless of the circumstances.

Pakistan’s economic stability largely depends on these countries. China transferred billions of dollars in deposits to help Pakistan meet its debt obligations; Approximately 4 billion dollars are expected for 2024-25 within the scope of regulations related to the China-Pakistan Economic Corridor (CPEC), where more than 60 billion dollars have been invested in energy and infrastructure investments.

Saudi Arabia provided $3 billion in deposits to the State Bank of Pakistan in December 2024 and deferred oil payment facilities worth approximately $1.2 billion in 2025. Riyadh has also pledged investments ranging from $5 billion to $25 billion in sectors such as mining, agriculture and IT.

The UAE secured a $2 billion loan in early 2025 and has committed to investing between $10 billion and $25 billion in Pakistan’s energy, port operations and wastewater treatment sectors.

Qatar signed a protocol to implement a $3 billion investment focused on aviation, agriculture and hospitality and continues to be an important LNG supplier to Pakistan.

Sharif also expressed concern over rising poverty, unemployment and Pakistan’s lack of progress in research, development and innovation.

Pakistan is facing a serious socioeconomic crisis; Poverty is estimated to affect 45% of the population due to inflation, floods and macroeconomic instability. Extreme poverty has risen sharply, while unemployment has hovered around 7.1%, leaving more than eight million people unemployed.

Exports remain largely dependent on textiles and commodities, while growth in sectors such as software, agriculture and animal husbandry is constrained by structural inefficiencies and low productivity.

Pakistan’s public debt exceeded Rs 76,000 billion as of March 2025, almost doubling in four years. The country is currently in its 23rd IMF program and is relying on repeated bailouts and loans (especially from China) to pay off its debt and avoid default.

Analysts say the Prime Minister’s frank admission highlights Pakistan’s long-term structural fragility as traditional dependence on geopolitical leverage for fiscal support declines.

Critics argue that by involving the Chief of Staff in loan negotiations, he signals to creditors that the military (seen as the most stable institution) stands behind the debt, further blurring civil-military boundaries.

Observers note that rather than building an export-led economy like Vietnam or Bangladesh, Pakistan relies on borrowed funds to maintain artificial exchange rates and finance elite consumption.

Adding to the criticism, reports that Pakistan is spending heavily to secure its influence in international political circles—despite the country’s rampant inflation and energy shortages—have raised questions about national priorities and governance.