Pakistan news: Poor Pakistan has finally shown its worth. Pakistan, which was trying to play the role of ‘mediator’ in the war between America and Iran, has now demanded the reward of its ‘brokerage’. According to sources, Islamabad has demanded $10 billion from the administration of US President Donald Trump.
Pakistan wants this amount to be given to it as ‘Currency Support Facility’ so that it can support its dwindling foreign exchange reserves and the historic decline in the Pakistani rupee.
Pakistan placed demand before America
According to the information, Pakistan government officials have put forward their demand in this regard to US Treasury Secretary (Finance Minister) Scott Besant. Pakistan has sought ‘Bilateral Exchange Stabilization Support Facility’ between the two countries for a period of 5 years. If this is approved by Washington, it can significantly reduce Pakistan’s dependence on strict conditions and frequent borrowings from international financial institutions (such as the IMF).
However, till now no concrete assurance or commitment has been given on this proposal by the Trump administration or the US Finance Department.
Want to charge arbitration fees?
There has been a change in Pakistan’s diplomatic position after the deepening of the US-Iran conflict in recent months. On the one hand, Islamabad has relations with the American leadership, on the other hand it also has borders and historical relations with neighboring Iran. In such a situation, Pakistan tried to bring both the parties to the negotiation table. He tried to establish ceasefire with countries like Qatar and Türkiye. In such a situation, now he wants to recover this ‘mediation fee’ from America.
Pakistan is under heavy debt pressure
At present, Pakistan has to implement tough economic decisions to save the $7 billion bailout package received from the International Monetary Fund (IMF), due to which the public is upset. To handle its crumbling economy, the government had to impose heavy taxes, cut the budget and take many tough measures. In such a situation, if any financial help is received from America, it will be no less than a lifeline for Islamabad.
In the year 2023, the country was on the verge of bankruptcy (default), to overcome which it first got an emergency relief of 3 billion dollars from the IMF and then a big loan of 7 billion dollars. Apart from this, a separate fund of $1.3 billion was also approved to deal with the risk of climate change and natural disasters.
Despite all these efforts, Pakistan’s existence largely depends on the kindness of allied countries like China, Saudi Arabia and UAE. Recently in the month of April, when UAE had to repay the old loan of about 3.5 billion dollars, the condition of Pakistan’s treasury again became bad. However, later new economic help from Saudi Arabia has definitely provided support to the falling foreign exchange reserves for some time.
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