Pakistan PM calls overseas borrowing humiliating as IMF talks continue
January 31, 2026: Pakistan Prime Minister Shehbaz Sharif on Friday made a rare and candid admission about the country’s financial distress, saying he and Army Chief Field Marshal Asim Munir had to travel abroad to seek loans. Addressing leading exporters in Islamabad, Sharif said Pakistan’s foreign exchange reserves have nearly doubled but largely consist of borrowed funds. “The one who takes a loan bows his head,” he remarked, underlining the pressure his government faces amid the ongoing economic crisis.
Sharif openly spoke about the humiliation involved in seeking financial assistance, calling it a blow to national self-respect. “We feel ashamed when Field Marshal Asim Munir and I go around the world begging for money. Taking loans is a huge burden on our self-respect,” he said. His comments come as Pakistan continues negotiations with the International Monetary Fund on a growth-oriented plan after implementing tough stabilisation measures. Recently, Pakistan received $1.2 billion from the IMF under its loan programme and a separate climate funding arrangement, helping it repay debts and shore up reserves.
The prime minister said the central bank now expects foreign exchange reserves to cross $20 billion by December. He added that the finance ministry and central bank have been directed to improve access to capital to boost industrial growth. Sharif stressed the need for bold decisions to support businesses, while noting that Finance Minister Muhammad Aurangzeb’s team has argued before the IMF that Pakistan has achieved stability and must now prioritise job creation and poverty reduction.