Pakistan has just requested from the United States an exchange stabilization facility for $10 billion (exchange stabilization facility). This isn’t an ordinary loan—it’s an arrangement backed by the U.S. Treasury (Treasury), which has approved it for only two countries since 2002.

But the key is the background: they nearly defaulted in 2023. Even now, they still rely on rollovers with China and Saudi Arabia to keep foreign exchange reserves afloat. Now, they’re using their role in Iran negotiations to seek breathing room for the rupee.
Diplomacy isn’t charity. It’s a deal. And this deal comes with a very clear price tag.