Pakistan’s Debt Trap is a ‘Death Trap’, PM Shehbaz Tells WEF

Debt and inflation pose significant challenges to Pakistan, Prime Minister Shehbaz Sharif said while addressing a session of the World Economic Forum in Riyadh, Saudi Arabia, on Monday.

“There is also a problem of inflation and debt trap, [whom] I call ‘deathtrap’, [as] all this together pose a huge challenge [to Pakistan],” the PM said. He emphasized the need for comprehensive reforms to address issues like power theft and elitism, but at the same time hinted at aggressive austerity measures for reviving the economy.

Shehbaz said the federal government was working on big reforms to deal with economic challenges but acknowledged that the job was easier said than done.

The premier recalled the hazardous flash floods of 2022 which ravaged a big chunk of the country and required substantial relief efforts. He lamented Pakistan’s disproportionate suffering despite the country’s minimal contribution to global warming.

Regarding inflation, Shehbaz blamed recent global price hikes to the Ukraine-Russia war and called for a ceasefire in Gaza.

Earlier on the sidelines of the WEF Special Meeting in Riyadh, Shehbaz met Kristalina Georgieva, Managing Director (MD) of the International Monetary Fund (IMF).