Addressing leading exporters and business leaders at an event in Islamabad, Sharif underlined the growing debt burden and stressed the need for alternative economic strategies to restore Pakistan’s dignity.
“We feel ashamed when Field Marshal Asim Munir and I go around the world begging for money. Taking loans is a huge burden on our self-respect. Our heads bow down in shame. We cannot say no to many things they want us to do,” Sharif said, as quoted by local broadcaster A1tv.
Sharif’s remarks highlight Pakistan’s deepening economic crisis and heavy reliance on external assistance, particularly as the country seeks IMF support and debt rollovers. He also praised Pakistan’s “all-weather friend” China, along with Saudi Arabia, the UAE, and Qatar, for supporting Islamabad during difficult times.
Pakistan’s economic stability is heavily dependent on these countries, which provide critical financial backing to shore up foreign exchange reserves and avert balance-of-payments crises.
China has rolled over billions of dollars in deposits to help Pakistan meet its debt obligations, with nearly $4 billion expected during 2024–25. The China-Pakistan Economic Corridor (CPEC) remains central to this support, involving over $60 billion in energy and infrastructure investments.
Saudi Arabia extended a $3 billion deposit to the State Bank of Pakistan in December 2024 and offered a deferred oil payment facility worth around $1.2 billion in 2025. Riyadh has also pledged investments in mining, agriculture, and information technology, potentially ranging between $5 billion and $25 billion.
The UAE rolled over a $2 billion loan in early 2025 and committed to investments in energy, port operations, and wastewater treatment, with proposed investments estimated between $10 billion and $25 billion.
Qatar has signed agreements to realise $3 billion in investments focused on aviation, agriculture, and hospitality, and remains a key supplier of liquefied natural gas (LNG) to Pakistan.
Despite these lifelines, Sharif raised concerns over rising poverty, unemployment, and the lack of progress in research, development, and innovation.
Pakistan is facing a severe socio-economic crisis, with poverty levels estimated to have climbed towards 45 per cent of the population, driven by inflation, climate-related disasters, and prolonged economic instability. Unemployment stands at around 7.1 per cent, with more than eight million people out of work, while exports remain largely dependent on textiles and basic commodities.
Public debt has crossed Rs 76,000 billion as of March 2025, nearly doubling in four years. Pakistan continues to rely heavily on IMF bailouts and Chinese loans—particularly linked to CPEC projects—to service its debt and avoid default.
Sharif’s candid admission underscores what many analysts describe as a structural economic fragility that has evolved into a prolonged state of crisis. Traditionally, Pakistani leaders framed foreign assistance as “strategic partnerships” or “brotherly support,” but the country’s ability to leverage geopolitical importance for financial aid has significantly diminished.
The inclusion of the Army Chief in loan negotiations signals to creditors that the military—widely viewed as Pakistan’s most stable institution—stands behind these commitments, further blurring the lines between civilian governance and military influence.
Critics note that instead of building a strong export-oriented economy like Vietnam or Bangladesh, Pakistan has relied on borrowed funds to prop up exchange rates and finance imports, largely benefiting elites. The country is currently on its 23rd IMF programme, and without structural reforms—such as expanding the tax base to include the landed elite and retail sector—each bailout merely services existing debt.
Adding to the criticism, reports of significant spending to secure international influence have raised questions about priorities, particularly as ordinary citizens grapple with soaring inflation, energy shortages, and declining living standards. (Agencies)
