Pakistan has requested a $10 billion loan from the United States
Pakistan has formally requested foreign exchange stabilization facilities worth $10 billion from the U.S. Treasury Department, a request which, if approved, would be the largest facility of its kind in the country’s history.
This request comes at a time when relations between Islamabad and the Trump administration have strengthened following Pakistan’s role in mediating between Iran and the United States.
Pakistan currently has approximately $123 billion in short-term bilateral debt, a significant portion of which is related to its obligations to China, Saudi Arabia, and Kuwait, and requires continuous renewal or repayment.
The request for the $10 billion facility may have been made with the aim of strengthening Pakistan’s foreign exchange reserves and reducing the pressure from the country’s foreign obligations.