Islamabad: Pakistan Prime Minister Shehbaz Sharif has openly acknowledged the discomfort and loss of national pride associated with Islamabad’s repeated appeals for foreign financial assistance, saying the country’s leadership often finds itself unable to refuse conditions attached to such support.
Speaking at a gathering of leading exporters and business figures in Islamabad, Sharif said Pakistan’s growing reliance on external borrowing has become a matter of deep embarrassment for the state. He noted that seeking funds abroad places officials in an awkward position and limits the country’s ability to make independent choices.
According to local broadcaster A1tv, the Prime Minister remarked that both he and Army Chief General Asim Munir feel humiliated while approaching other nations for financial help, adding that debt has become a heavy burden on Pakistan’s self-respect. He suggested that the country’s dependence on loans has weakened its negotiating power on the global stage.
The candid remarks come at a time when Pakistan is once again navigating talks with the International Monetary Fund and seeking rollovers from friendly nations to avoid a balance-of-payments crisis. Analysts see Sharif’s comments as a rare public admission of the depth of Pakistan’s economic vulnerability.
Support from close allies
While expressing frustration over borrowing, Sharif praised China, Saudi Arabia, the United Arab Emirates and Qatar for standing by Pakistan during difficult periods. He described China as an “all-weather friend” and acknowledged the role of Gulf nations in stabilising Pakistan’s economy through deposits, loans and investment commitments.
China continues to be Pakistan’s largest financial backer, having rolled over billions of dollars in deposits and funded infrastructure and energy projects under the China-Pakistan Economic Corridor, a programme valued at over $60 billion. Saudi Arabia has extended multibillion-dollar deposits and oil credit facilities, while also signalling interest in large-scale investments across key sectors. The UAE and Qatar have similarly supported Islamabad through loan rollovers, energy supplies and proposed investments in aviation, ports and agriculture.
These inflows, routed through mechanisms such as the Special Investment Facilitation Council, have been crucial in shoring up foreign exchange reserves and preventing default.
Concerns over poverty and jobs
Sharif also flagged the worsening social impact of Pakistan’s economic crisis, pointing to rising poverty, joblessness and weak investment in research and innovation. He said the country has failed to diversify its economy, remaining overly dependent on textiles and low-value exports.
Recent estimates indicate that nearly half of Pakistan’s population may now be living below the poverty line, a sharp increase from previous years. Extreme poverty has surged in the wake of devastating floods, persistent inflation and prolonged economic instability. Unemployment has climbed to over 7 per cent, with millions—particularly educated youth—struggling to find work, often settling for insecure jobs in the informal sector.
A cycle of debt
Pakistan’s public debt has swelled dramatically, crossing Rs 76,000 billion by March 2025, nearly double the level recorded four years earlier. The country is currently engaged in its 23rd IMF programme, underscoring what economists describe as a chronic structural crisis rather than a temporary downturn.
Observers note that instead of building a competitive, export-driven economy, successive governments have relied on short-term borrowing to prop up currency values and finance imports, largely benefiting elite groups. The involvement of the military leadership in financial negotiations, they add, signals to creditors that institutional stability rests with the armed forces, further blurring civilian-military boundaries.
Sharif’s unusually blunt remarks have reignited debate within Pakistan about economic priorities, especially amid reports of large sums being spent on international lobbying even as ordinary citizens grapple with soaring prices, energy shortages and shrinking livelihoods.
