Pakistan PM Shehbaz Sharif Expresses Shame Over Foreign Loan Reliance

Pakistan's Prime Minister Shehbaz Sharif has openly expressed frustration and shame over the country's heavy reliance on foreign loans, stating that seeking financial aid undermines national self-respect. He highlighted the embarrassment felt by officials, including Army Chief Asim Munir, when 'begging' for money. Pakistan is grappling with a severe debt crisis, with public debt exceeding Rs 76,000 billion as of March 2025, nearly doubling in four years. The nation heavily depends on IMF bailouts and financial support from 'all-weather friends' like China, Saudi Arabia, United Arab Emirates, and Qatar to manage debt obligations and prevent a balance-of-payments crisis. These countries have provided billions in rolled-over deposits, loans, and investment pledges, particularly through frameworks like the China–Pakistan Economic Corridor. Sharif also raised concerns about rising poverty, unemployment (estimated at 7.1% with over eight million jobless), and inflation, which has pushed up to 45% of the population below the poverty line. The country's exports remain heavily reliant on textiles, with structural issues hindering growth in other sectors. Critics argue that involving the Army Chief in loan negotiations blurs civilian governance and signals military guarantees for debt. The situation underscores Pakistan's long-standing structural fragility and its struggle to build an export-oriented economy.