Pakistan Prime Minister Shehbaz Sharif on Thursday made a frank admission about the country’s reliance on external financial assistance, saying nations that depend on bailouts cannot “hold their head high” and must accept the conditions imposed by lenders.
Speaking at an exporters’ award ceremony in Islamabad, Sharif said Pakistan had to approach several friendly countries to arrange funds to plug its external financing gap and keep the International Monetary Fund (IMF) programme on track.
“How do I explain the way we went to friendly countries to ask for loans?” Sharif said. “Those countries supported us, but the reality is that when you go to seek loans, your head remains bowed. And with that come obligations, which you all understand.”
The prime minister said he was speaking openly about the situation. “Without any hesitation, the field marshal and I quietly visited many countries and told them about the IMF programme and our external gap. We requested billions of dollars to stabilise the economy,” he said.
While expressing gratitude to the countries that extended support, Sharif underlined the personal and national cost of seeking assistance. “I am deeply thankful to our friends, but when you ask others for help, you pay a price in terms of self-respect. Compromises have to be made,” he said.
Sharif added that these compromises are not limited to economic decisions. “Later, when demands come, even if there is no strong justification, you still have to bear that burden,” he said, referring to the pressures Pakistan faced during the crisis.
China, he said, was the foremost supporter during the difficult period, particularly through the rollover of loans. “In our toughest moments, China stood by us,” Sharif said. He also acknowledged support from Saudi Arabia, the United Arab Emirates and Qatar, saying they extended full cooperation.
According to the prime minister, this support helped piece together the financial programme and move the economy towards stability. However, he cautioned against complacency. “The economy has stabilised, but that alone is not sufficient,” he said.
Pointing to domestic challenges, Sharif said poverty levels had risen, unemployment remained high, and export growth had fallen short of expectations.