Pakistan PM: Loans forced us to bow, self-respect at stake
Pakistan PM: Loans forced us to bow, self-respect at stake
Pakistan's prime minister recalls the humiliation of seeking foreign loans, saying self-respect came at a price, even as IMF-backed aid steadies the economy.
In a ceremony honoring Pakistan’s eminent businessmen and exporters in Islamabad, the prime minister reflected on a dark chapter when the country faced fears of bankruptcy and was described as being on the verge of a technical default. He said seeking foreign loans forced the nation to “bow” its head and accept compromises at the cost of self-respect.
The remarks came as he highlighted a turning point: a 2023 meeting with the IMF’s managing director in Paris that paved the way for an economic program that helped stabilise the economy. Friendly countries had rallied behind Pakistan during the crisis, and cooperation with military leaders also played a role in securing needed support.
He stressed that loans always carry obligations. “When you go seeking loans, you have to pay the price at the cost of your self-respect. You have to compromise... Sometimes, undue demand may come up, and you have to implement it even when there is no reason to fulfil it.” The emphasis was on the difficult trade-offs policymakers faced in trying to avert a deeper crisis.
Pakistan remains heavily dependent on external finance to manage its reserves, with support from China, Saudi Arabia, the UAE, and Qatar helping to bridge gaps. The IMF’s latest move — a fresh $1.2 billion disbursement — arrived as a sign of relative short-term stability, even as the country continues to grapple with a heavy debt load and weak investment.
The prime minister framed the recent stabilization as a crucial, albeit temporary, respite and urged resilience and prudent policy. The admission underscored how external aid, domestic reforms, and strategic diplomacy shape Pakistan’s ongoing effort to navigate a challenging economic landscape.
