Calling on friendly countries for more loans 'embarrassing': PM.

LAHORE -- Expressing regret over his calls for funds to friendly countries, Prime Minister Shehbaz Sharif said Saturday that it really embarrassed him to ask for further loans.

Addressing the passing out ceremony of probationary officers of the Pakistan Administrative Service (PAS), PM Shehbaz opined that seeking foreign loans was not the right solution to address Pakistan's economic challenges as the loans would have to be returned.

In the past, "time was wasted with the creation of chaos and protests", he said, slamming the Pakistan Tehreek-e-Insaf (PTI).

The prime minister said that sustainable development goals (SDGs) could be achieved and foreign loans avoided had their "bus could have moved at a fast pace" and on the right track.

Elaborating on his viewpoint on the economic challenges faced by the country, he regretted that during the past 75 years, different governments - whether headed by political leadership or military dictators - could not address the economic issues.

The prime minister maintained that during his recent visit to the United Arab Emirates (UAE), President Sheikh Mohammed bin Zayed had very graciously and affectionally announced to grant of a further $1 billion loan to Pakistan.

Speaking on the occasion, PM Shehbaz also lauded Saudi Arabia for its financial support.

Pakistan's central bank forex reserves have plunged to the lowest level since February 2014 after a decline of 22.11%, posing a serious challenge for the country in financing imports.

The country - with an economy of Rs350 billion - is in dire need of foreign aid to reduce its current account deficit as well as ensure enough reserves to meet its debt obligations.

Pakistan's economy has crumbled alongside a simmering political crisis, with the rupee plummeting and inflation at decades-high levels, but devastating floods and a global energy crisis have worsened the situation.

In its call for funds at the recent International Conference on Climate Resilient Pakistan in Geneva, the country was able to secure pledges worth over $10 billion - most of them loans.

UAE has agreed to roll over $2 billion and also approved providing $1 billion in loans. Moreover, Pakistan and Saudi Arabia inked an agreement earlier this week to finance oil derivatives worth $1 billion.

Riyadh also is considering beefing up its deposit in the State Bank of Pakistan (SBP) from $3 billion to $5 billion as Crown Prince Mohammad Bin Salman directed his financial officials to study...

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