Prime Minister of Pakistan Shehbaz Sharif expressed deep concern over the nation’s dependence on external funding, arguing that the constant pursuit of foreign aid was compromising national honor and causing considerable concern to the leadership, including Army Chief Asim Munir.
Speaking to major exporters and industrial titans in Islamabad, Sharif highlighted how debt obligations are affecting Pakistan’s position and called for a move towards new economic frameworks.
Sharif’s candid admission about the “humiliation” of the loans underscores the country’s ongoing financial volatility and its reliance on global lenders as it seeks IMF packages and loan extensions.
“We feel shame when the field marshal Asim Munir and I go around the world FROGGING for money. Taking loans is a huge burden on our self-esteem. We bow our heads in shame. We can’t say NO to many things they want from us,” Pakistani Prime Minister Shehbaz Sharif said, according to local media. A1tv.
Sharif expressed gratitude to “all-weather friends” such as China, Saudi Arabia, the United Arab Emirates and Qatar, noting their continued support for Islamabad through various economic cycles and geopolitical shifts.
The country’s financial stability remains tied to these countries, whose capital injections are vital to maintain foreign exchange reserves and avoid a liquidity crisis. China, the primary creditor, has set aside billions in deposits to help manage the debt, with $4 billion planned for 2024-25. The China-Pakistan Economic Corridor (CPEC) serves as a core investment pillar totaling over US$60 billion in energy and transit projects.
Saudi Arabia reinforced its commitment by renewing a $3 billion deposit at the end of 2024 and offering a $1.2 billion oil credit for 2025.
Riyadh also expects significant investment in mining and IT, with potential transactions ranging from $5 billion to $25 billion.
Similarly, the United Arab Emirates provided a $2 billion loan in early 2025 and pledged billions more for infrastructure and port management, with targets of up to $25 billion.
Qatar has also formalized a $3 billion investment protocol targeting aviation and agriculture, which remains an important supplier of LNG.
These alliances are critical to Pakistan’s survival, with funds channeled through CPEC and the Special Investment Facilitation Council (SIFC).
At the same time, Sharif warned of widening poverty and unemployment, citing a lack of progress in research and technological advancement.
Pakistan is currently facing a serious social emergency, with the poverty rate reportedly approaching 45% due to high inflation and climate disasters. Unemployment has reached around 7.1% and more than eight million people have been left out of work, while the export sector remains disproportionately tied to basic textiles.
