"We go around the world begging for money; Our heads bow down in shame": Pak PM Shehbaz Sharif admits

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif has said that the country is extremely ashamed of having to reach out to world countries for financial assistance. The Prime Minister made the revelation during a meeting with the country's leading exporters in Islamabad on Saturday. He noted that when he and Asim Munir go around the world for financial help, it is a source of embarrassment, as they have to make compromises. "We cannot say no to many things they want us to do," Shehbaz Sharif admitted, referring to the demands attached to loans from international lenders and foreign nations.

Pakistan's economy has been in a state of flux since 2008. Inflation surged in 2021, pushing the country toward a significant economic crisis. The Prime Minister announced that the nation's foreign exchange reserves have nearly doubled; however, this increase also includes debts owed to friendly countries. Currently, Pakistan is in discussions with the International Monetary Fund (IMF) regarding the repayment of these debts. Recently, Pakistan received $1.2 billion from the IMF as part of a loan program and climate finance. This funding has helped to pay off old debts and improve the foreign exchange reserves.

Shehbaz Sharif has instructed the country's Finance Ministry and the State Bank (central bank) to ensure the availability of capital to support and promote industrial growth. He asked the State Bank Governor to be ready to listen to the suggestions of business leaders and take bold decisions.

The interest rate has been kept unchanged at 10.5 percent due to the threat of inflation. Pakistan's GDP is expected to grow by 3.75 percent to 4.75 percent in the coming fiscal year.

The central bank estimates that Pakistan's foreign exchange reserves will reach a record high of $20 billion by December 2026. At the same time, the country must adhere to strict monetary policy and expenditure controls as part of the IMF program. Prime Minister Sharif mentioned that a team led by Finance Minister Aurangzeb has presented the government's position to the IMF. Now that the country has achieved economic stability, the government will prioritize creating jobs and reducing poverty.