Indebted Pakistan Rolls Out Red Carpet for Indian-Origin World Bank Chief, Shahbaz Sharif’s Debt Drama

The Indian-origin World Bank President Ajay Banga visited Pakistan for a four-day trip, which was intended to focus on supporting the country’s struggling economy. However, the visit was turned into a grandiose cultural spectacle by the Shahbaz Sharif government, highlighting Pakistan’s growing reliance on external debt.

A Grand Welcome Amid Economic Crisis
Pakistan, grappling with severe financial constraints, hosted Banga with lavish ceremonies, including a tour of his ancestral home in the Khushab district of Punjab province. Local authorities painted walls and displayed slogans in Punjabi and Hindi to welcome him, referring to him as a “son of the soil.” Historical revenue records related to Banga’s family property were also presented, emphasizing his roots in the region.

Prime Minister Shahbaz Sharif had recently acknowledged that he and Army Chief Asim Munir had been traveling abroad to secure loans, often describing the process as humbling. Yet, while portraying debt-seeking as a moment of national embarrassment, Sharif orchestrated a public display of pageantry to host one of Pakistan’s largest creditors.

World Bank and Pakistan’s Debt
Pakistan’s economy is currently under severe strain, with external debt nearing $130 billion, about 20% of which is owed to the World Bank. At the end of 2025, the World Bank released $70 million to promote public services, while Pakistan continues to seek billions from the IMF. In this context, winning the favor of major creditors has become critical for the government.

Debt Discussions and Future Loans
During the visit, Banga held official meetings with Shahbaz Sharif, Finance Minister Mohammad Aurangzeb, and other senior officials. Discussions focused on the $20 billion Country Partnership Framework, under which Pakistan could receive up to $20 billion in loans over the next decade, contingent on meeting governance and reform requirements.

While Pakistani authorities presented Banga’s ancestral visit as a symbol of peace, goodwill, and hospitality, the grand reception also highlighted the stark reality of a country struggling to secure its economic survival. In essence, Pakistan is now going to extraordinary lengths—including leveraging heritage and spectacle—to attract much-needed foreign debt.