Pakistan 'ashamed': PM Shehbaz Sharif 's surprising admission on Bangladesh's economic rise

Pakistan's Prime Minister Shehbaz Sharif this week engaged with the business community in Karachi to strategize on bolstering the economy. Describing the session as an opportunity to heed the insights of business leaders and translate them into actionable economic plans, Shehbaz made a reference to the remarkable industrial progress of Bangladesh, formerly East Pakistan, according to a report published by Dawn.

Reflecting on the transformation, he remarked, "I was quite young when … we were told that it’s a burden on our shoulders… Today you all know where that ‘burden’ has reached [in terms of economic growth]. And we feel ashamed when we look towards them."

Following Shehbaz's address, the floor opened for discussions where business leaders, while appreciating recent governmental initiatives, expressed concerns over political instability. Arif Habib, chief of Arif Habib Group, suggested further engagements such as trade talks with India and reconciliation with imprisoned PTI leader Imran Khan to foster political stability.


Although Shehbaz refrained from directly addressing political stability concerns, he assured the gathering of his commitment to economic growth. He pledged to convene with businessmen nationwide in Islamabad until all issues are resolved.

In parallel, the International Monetary Fund (IMF) is set to review a $1.1 billion funding package for Pakistan, representing the second tranche of a $3 billion standby arrangement established to prevent a sovereign default. With the current arrangement set to expire, Pakistan's Finance Minister aims to secure a larger, longer-term loan by early July, acknowledging the persistent balance of payment crisis and the need for structural reforms.

Pakistan's Finance Minister mentioned on Tuesday that the country aims to reach a staff-level agreement with the IMF for a new, larger, and longer-term loan by early July. The existing $3 billion arrangement, established last summer to avert a sovereign default, is set to expire at the end of April.

Facing a persistent balance of payment crisis in its $350 billion economy, Pakistan seeks a substantial, extended loan to stabilize economic activity and financial markets, facilitating overdue structural reforms. This potential loan would represent Pakistan's 24th IMF bailout. (With Reuters inputs)