Pakistan 10 Billion Dollar Help: Pakistan, which was wandering from door to door for money, has now extended its hands to America. Pakistan has demanded full 10 billion dollars (about Rs 96000 crore) from America. Pakistan wants to use this money to strengthen its economy. Pakistan has been struggling with economic crisis for a long time and now it has sought this help from America at a time when the bailout program of the International Monetary Fund (IMF) is already going on.

The economy is running dependent on debt

Pakistan was on the verge of default in the year 2023, when it was saved by an emergency package of $3 billion from the International Monetary Fund (IMF). After this, Pakistan again took another big loan of 7 billion dollars from IMF. However, the condition of getting loan from IMF was that in return, Pakistan would have to increase the tax collected by the government on the public’s earnings. Due to this, inflation in the country reached its peak.

Another big problem with Pakistan is that its foreign exchange reserves are also dependent on loans taken from friendly countries like China and Saudi Arabia. In this situation, if an exchange stabilization facility of 10 billion dollars is available from America, then Pakistan will get huge economic help.

Pakistan’s new bet

This request of Pakistan came after its role in facilitating talks between the two countries during the recent military conflict between America and Iran. The mediation between America and Iran strengthened Pakistan’s diplomatic position and raised hopes that it can now ask for stronger economic help from America. This may have been the reason why Pakistan Finance Minister Muhammad Aurangzeb met US Treasury Secretary Scott Besant in Washington and asked for a bilateral exchange stability assistance facility of $10 billion.

Why is it different from a normal loan?

This is not a traditional loan or borrowing, but a kind of currency swap. Under this, the US Treasury does not donate or alms any funds to Pakistan, rather it is a temporary swap of Pakistan Rupees in exchange for US Dollars. This shows that the country has a short term guarantee of the dollar. This also strengthens the confidence of foreign investors and restarts foreign investment in the country. Due to this, Pakistan does not have to face the stringent conditions of IMF.

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