‘We Feel Ashamed Begging for Money’: Pakistan PM Shehbaz Sharif Admits Foreign Loans Hurt National Pride

International

oi-Gaurav Sharma

Published: Saturday, January 31, 2026, 16:16 [IST]

Pakistan Prime Minister Shehbaz Sharif delivered one of his most candid public confessions yet on Friday night, admitting that the country's dependence on foreign loans has eroded not just its finances but also its sense of dignity. Speaking to exporters in Islamabad, Sharif laid bare the emotional and political cost of repeatedly seeking help abroad to keep the economy afloat.

Without diplomatic cushioning, the Prime Minister described the humiliation he feels during foreign trips undertaken to secure financial assistance. Standing alongside army chief Field Marshal Asim Munir, Sharif said the act of borrowing has forced Pakistan into a position where it cannot freely reject conditions imposed by lenders. "Our heads bow down in shame," he said, acknowledging that the price of survival has been a loss of self-respect.

Sharif cautioned against celebrating headline improvements in foreign exchange reserves, arguing that the numbers mask a fragile reality. The rise, he explained, is driven not by export growth or economic revival but by loans and deposits from friendly nations. Borrowing may create the appearance of stability, he said, but it deepens dependence.

That dependence has been cushioned by allies stepping in at critical moments. China has rolled over billions in deposits and continues to anchor investment through the China-Pakistan Economic Corridor. Saudi Arabia has provided cash support and oil facilities, while the UAE and Qatar have renewed loans and investment commitments. Their assistance, Sharif admitted, has helped Pakistan avoid an immediate balance-of-payments collapse.

Yet behind the diplomatic lifelines lies a country under strain. Nearly half of Pakistan's population is living in poverty, millions remain without jobs, and public debt has surged beyond Rs 76,000 billion. The economy, Sharif said, continues to struggle with low innovation and weak growth, leaving the government trapped in a cycle of borrowing and reform under International Monetary Fund supervision.

As talks with the IMF continue, Sharif acknowledged the narrow choices facing his government. Securing urgent funds, he said, often comes at the cost of independent decision-making, but walking away is not currently an option.

The Prime Minister's remarks reflect a rare moment of public introspection by Pakistan's leadership. While foreign partners have helped pull the country back from the brink, Sharif's admission underscores a deeper dilemma - how long Pakistan can rely on external rescue without reclaiming control over its economic future.