ISLAMABAD — Pakistan has applied for a U.S. foreign currency backstop facility valued at up to $10 billion to enhance its capacity to manage potential foreign reserve shocks, according to Nikkei Asia.
The request for this currency backstop came after Pakistan played a mediating role between the United States and Iran. This mediation effort was led by Pakistan's military chief, Field Marshal Asim Munir.
Experts have warned that while the funding could provide financial relief, it may also lead to increased scrutiny from Washington regarding Pakistan's debt obligations to China.
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