RIYADH: Highlighting the problems being faced by the cash-strapped nation, Prime Minister Shehbaz Sharif on Monday said that the ‘deathtrap’ — debt trap — and soaring inflation posed a huge challenge to Pakistan.
He made the remarks while speaking at the closing plenary of a special meeting of the World Economic Forum (WEF) being held in Riyadh, Saudi Arabia.
PM Shehbaz landed in Riyadh on Saturday for a three-day visit to attend the World Economic Forum’s Special Meeting on Global Collaboration, Growth and Energy.
He was invited to attend the moot by Saudi Crown Prince and Prime Minister Muhammad bin Salman Al Saud and the chief executive of the WEF Klaus Schwab.
Addressing the closing session of the moot, PM Shehbaz said: “There is also a problem of inflation and debt trap, [whom] I call ‘deathtrap’, [as] all this together pose a huge challenge [to Pakistan].”
Lauding the leadership of the kingdom, he thanked the Saudi government for its support extended to Pakistan.
Talking about his government’s efforts to steer the country out of crisis, the country’s chief executive said: “Pakistan is going for massive reforms to deal with economic challenges.”
“We have taken the reins of the country after the February 8 elections and I am now determined to put things in order. It's easier said than done.”
He further said that the country’s electricity sector was in a shamble as power theft was in a massive fashion. Moreover, the premier lamented that the “elitest culture” is prevailing in the country wherein “handouts are being given to those who don’t deserve it”.
“We have to stand on our own feet. I know this is difficult but not impossible. We are now going for a deep-rooted structural reform.”
“Then we have to go for austerity, a meaningful austerity, but not just for publicity,” he added.
Moving on to climate change, the premier said that global warming brought disaster in Pakistan in 2022 in the form of catastrophic floods.
Due to the catastrophic floods in Pakistan, large swathes of land were submerged millions of houses and animals were washed away and stagnant water brought waterborne diseases all across the country, the premier continued.
PM Shehbaz said his government spent Rs100 billion from scarce resources for relief and rehabilitation of flood affectees.
Pakistan’s economy suffered losses of $30 billion because of floods and then it approached international entities in Geneva and other places and had to borrow loans at expensive rates due to the natural disaster which was not its fault, he noted.
“Our country was hit in a way which I had not seen in my lifetime,” the prime minister remarked.
“Pakistan is among those countries who do not have any role in climate change,” he added.
Referring to sky-rocketing inflation, the prime minister said: “Due to the war in Ukraine, prices of goods have increased globally.”
Stressing the need for an immediate ceasefire in Gaza, the PM said that world peace is linked with normalcy in the besieged enclave.