Islamabad

Pakistan Prime Minister Shehbaz Sharif on Friday made a rare and candid admission about the personal and national cost of seeking foreign financial assistance, saying repeated appeals for loans had forced the country to bow its head and make painful compromises at the expense of self-respect.

Speaking at a ceremony organised to honour leading businessmen and exporters in Islamabad, Sharif reflected on the severe economic crisis his government inherited, when Pakistan was widely perceived as being on the brink of bankruptcy and even technical default.

“When we took charge, the economy was in an extremely fragile condition and ordinary citizens were bearing the brunt of inflation and uncertainty,” the prime minister said, recalling the difficult early months of his tenure.

Sharif referred to his meeting with the Managing Director of the International Monetary Fund (IMF) in Paris in 2023, following which the global lender approved a critical economic programme that helped stabilise Pakistan’s finances and restore a degree of market confidence.

He acknowledged that several friendly countries stood by Pakistan during its time of need and said that, along with Chief of Army Staff and Chief of Defence Forces Field Marshal Asim Munir, he personally reached out to leaders of multiple nations to secure billions of dollars in financial support.

“Seeking loans is not easy to describe. When you approach others for financial help, your head is inevitably lowered,” Sharif said, adding that while friendly nations did not turn Pakistan away, the act of borrowing itself carried an unavoidable sense of humiliation.

The prime minister noted that foreign loans come with obligations that go beyond repayment. “When you depend on loans, compromises become inevitable. Sometimes unreasonable demands are placed, and despite having no justification, they must be accepted,” he said, underscoring the loss of policy autonomy that accompanies external dependence.

Pakistan continues to rely heavily on financial assistance from countries such as China, Saudi Arabia, the United Arab Emirates, and Qatar to manage its foreign exchange reserves and meet debt repayments. These nations, along with the IMF, have repeatedly provided loans, rollovers, and emergency support to keep the country afloat.

At the event, Sharif also announced a series of relief measures aimed at supporting industries and boosting exports. These included a reduction of PKR 4.04 per unit in electricity tariffs and a proposal to bring wheeling charges down to PKR 9, steps intended to lower production costs for exporters.

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He further said the government would cut the export refinance scheme rate from 7.5 per cent to 4.5 per cent, describing the move as a crucial intervention to provide immediate relief to businesses and stimulate export-led economic growth.