"When we go begging for money, our heads bow down in shame": Pak PM Sharif's big admission

Pakistan Prime Minister Shehbaz Sharif has made an unusually candid admission about the country’s financial distress, saying that he and Army Chief Field Marshal Asim Munir were compelled to personally approach foreign governments for financial assistance. The remarks were made during Sharif’s address to leading Pakistani exporters in Islamabad on Friday night, where he spoke frankly about the economic constraints confronting his government and the difficult choices forced upon it by prolonged financial stress. While noting that Pakistan’s foreign exchange reserves have improved in recent months, Sharif acknowledged that the increase was largely driven by external borrowing. “Our foreign exchange reserves have almost doubled, but they include loans from friendly countries,” he said, adding that seeking financial help came at a cost to national dignity. “When someone goes to ask for loans, his head is bowed,” he remarked.

The prime minister went on to describe the experience of soliciting aid as humiliating, stating that both he and the army chief had been forced to make compromises while seeking assistance abroad. “We feel ashamed when Field Marshal Asim Munir and I travel around the world asking for money,” Sharif said. “Taking loans places a heavy burden on our self-respect. We are often unable to refuse conditions imposed on us.”

Sharif’s comments come as Pakistan remains engaged in ongoing discussions with the International Monetary Fund (IMF) over measures aimed at sustaining economic stability and supporting future growth, following a period of strict fiscal and monetary tightening. Pakistan recently received $1.2 billion from the IMF under its existing loan programme, along with additional climate-linked financing. The inflows have helped the country service debt obligations and rebuild foreign exchange reserves, which had previously fallen to critically low levels. According to projections by the State Bank of Pakistan, foreign exchange reserves are expected to cross $20 billion by December, marking a potential record. However, the IMF programme also requires Islamabad to maintain tight monetary conditions and rein in government spending, limiting fiscal flexibility.

Earlier this week, Pakistan’s central bank surprised markets by holding its benchmark interest rate at 10.5 per cent, citing concerns that inflationary pressures could resurface. At the same time, it forecast economic growth of between 3.75 per cent and 4.75 per cent for the fiscal year ending in June. Sharif said his government has instructed the central bank and the finance ministry to prioritise industrial expansion by easing access to capital for businesses. “The central bank governor must engage with business leaders and take bold decisions,” he told exporters. He also said his economic team, led by Finance Minister Muhammad Aurangzeb, had presented a strong case to the IMF, arguing that Pakistan had achieved macroeconomic stability and must now shift focus towards job creation and poverty reduction. “We have conveyed that stabilisation has been achieved,” Sharif said. “The next challenge is generating employment and lifting people out of poverty.”