Prime Minister acknowledges Pakistan’s dependence on foreign financial assistance
Islamabad: Pakistan Prime Minister Shehbaz Sharif has openly acknowledged the humiliation involved in repeatedly seeking financial assistance from foreign countries, highlighting the serious economic challenges facing the country.
In remarks reported by several media outlets, Sharif said that he and Army Chief Asim Munir had to seek billions of dollars from friendly countries to help keep Pakistan’s economy afloat. He described the experience of seeking money from other countries as a matter of embarrassment and loss of self-respect.
Pakistan’s dependence on foreign support
- Pakistan has relied heavily on financial assistance from institutions such as the International Monetary Fund (IMF) as well as loans, deposits and financial support from friendly countries.
- Sharif’s comments highlighted the difficult position faced by the country as it struggles with debt, economic pressures and the need for external financing.
- The Prime Minister has previously spoken about the difficult experience of seeking financial assistance from other nations and the need for Pakistan to become economically self reliant.
Military also involved in economic efforts
- Sharif also credited Pakistan’s military leadership with helping the government address some economic problems.
- His remarks have renewed discussion about the unusually prominent role of the military in Pakistan’s economic and political affairs. Moneycontrol reported that Sharif described the relationship between the civilian government and military leadership as a partnership in addressing economic challenges.
A warning about Pakistan’s economic situation
- The Prime Minister’s admission has drawn attention because it comes against the background of Pakistan’s long running economic difficulties.
- The country has faced high debt, pressure on foreign exchange reserves, inflation and repeated dependence on external financial assistance.
- The remarks have therefore been widely viewed as a candid acknowledgement of the challenges Pakistan faces in achieving greater economic independence.
The bigger question
- The issue is not simply about taking loans.
- Countries around the world borrow money and seek financial assistance during economic crises.
- The bigger challenge for Pakistan is whether it can strengthen its economy enough to reduce its dependence on repeated bailouts and foreign support.
- For a country of more than 240 million people, long term economic stability will ultimately depend on stronger revenue collection, exports, investment, industrial growth and financial reforms.
Shehbaz Sharif’s remarks have once again brought Pakistan’s dependence on external financial support into the spotlight.
