Islamabad: Pakistan Prime Minister Shehbaz Sharif on Saturday hinted at how Pakistan’s financial crisis has dented the nation’s morale.
Speaking to a group of probationary officers of Pakistan Administrative Service (PAS), Shehbaz Sharif said it was embarrassing for him to seek more foreign loans.
It is a matter of shame for a nuclear power, Shehbaz Sharif said, to beg to shore up its faltering economy, according to The News International.
Foreign loans, he said, are not the right solution to address Pakistan's economic challenges as loans have to be returned.
The Prime Minister mentioned UAE President Sheikh Mohammed bin Zayed’s announcement of USD 1 billion loan more to Pakistan.
Despite Shehbaz Sharif’s embarrassment at seeking more loans, Pakistan has decided to approach Saudi Arabia for additional ‘ deposits” .
The move is part of Pakistan’s efforts to straddle the gaping financial deficit until things are finalised with the International Monetary Fund (IMF), reports say.
Pakistan’s top governmental sources reportedly said that Saudi Arabia is considering the “prospect’ further deposit to the cash-strapped nation.
Pakistan’s uncertain political situation gives trouble for policymakers to make hard choices required for reviving the IMF programme, source reportedly said.
Meanwhile, the foreign exchange reserves held by the State Bank of Pakistan (SBP) are depleting at a rapid pace, hitting to the bottom of just USD 4.3 billion as of January 6.
Commercial banks' foreign currency reserves are reportedly pegged at USD 5.8 billion, taking the country's cumulative reserves to around USD 10.18 billion.
Though Shehbaz announced the IMF review mission to visit Pakistan, it is yet to happen.
Pakistan is reportedly mulling to approach friendly countries for financial help, until IMF revives its programme for Pakistan.
Saudi Arabia is ‘studying’ the possibility of an additional USD 2 billion deposit, but no decision has been made yet.