According to a Reuters report, Pakistan has formally sought a Bilateral Exchange Stabilization Support Facility from the US Treasury with a maturity of up to five years. If approved, it would help strengthen Pakistan’s foreign exchange reserves, in the Short term, support the rupee and reduce dependence on IMF funding.
The request was reportedly discussed during Finance Minister Muhammad Aurangzeb’s meeting with US Treasury Secretary Scott Bessent.
But would the United States support Pakistan purely for economic reasons? History suggests strategic interests have often shaped Washington’s engagement with Islamabad.
Pakistan’s request for a $10 billion US exchange stabilization facility has sparked a bigger geopolitical question than an economic one. After years of relying on the International Monetary Fund (IMF), China, Saudi Arabia and the UAE to avoid repeated balance-of-payments crises.
It is now the time for Pakistan to consider for a Long term Planning, rather than a short term relief, as in the Past was done by the Previous Governments, but the History tells something really different, as there are NO FRIENDS, and NO FOES, in the international Diplomacy, It is there Interest and Need , on which relations are being Built and seasoned.
As regarding the Relationship of Pakistan – US, over the Last 78 years, it is quite bumpy, and whenever US needed Pakistan, they have showered all the Blessings, and the moment Pakistan is not needed, It was abandoned, rather punished.
US-Pakistan relations have been defined by a cycle of strategic alignment followed by sanctions, driven primarily by Pakistan’s nuclear program and shifting geopolitical needs.
❄️ Before & After the Cold War
The United States has repeatedly come close to Pakistan during periods when it has broader strategic interests outweighed concerns about Islamabad’s economic management. During the Cold War, Pakistan was a frontline US ally against the Soviet Union.
From the Year 1950s-1980s during the Cold War Alliance, Pakistan aligned with the US via pacts like SEATO and CENTO against the Soviet Union. This brought significant US military and economic aid.
But after that The History tell us of US Nuclear Sanctions starts as The US first terminated aid over Pakistan’s nuclear program in 1977. In 1979, sanctions (Symington & Glenn Amendments) were again invoked, suspending aid.
As the Soviet-Afghan War started, which started with The Soviet invasion of Afghanistan led the US to lift all sanctions in December 1979, making Pakistan a key ally and resuming significant aid, and this all continued from 1979, till the withdrawal of Soviet Union from Afghanistan 1989.
The after effects of the Soviet Invasion, and Afghan Jihad to flush out the Soviet forces from Afghanistan, in return for US Military and economic aid Pakistan has to take and active part in the War, and Hundreds of thousands of Militants were recruited and trained by Pakistani Intelligence Services in the Name of Mujahedeen, to take part in this Afghan Jihad , and finally Soviet Union left Afghanistan defeated , and as the Afghan Jihad concluded after the Soviet forces left the country , The US also left Pakistan with No Remedy , for the Left over Mujahedeen ,and the ammunition , which gave rise to the Militancy with in Pakistan , and a lot of Splinter groups joined different Sectarian , Ethnic, linguistic Organizations, and thus terrorism and drugs culture was all over Pakistan , which hampered the Progress & Prosperity of Pakistan , and till today Pakistan is Paying the cost of that Afghan Jihad.
Post-Cold War Sanctions (1990s):
After the Soviet withdrawal, strategic utility of Pakistan waned. So the Era of Sanctions from US, started in 1990 Pressler Amendment was invoked and the Pakistan came again under Sanctions due to which Delivery of Military Equipment of US$1.2Billion, 28 F- 16 Fighter Jets was halted.
Then in 1998 Additional sanctions (Glenn & Symington Amendments) were imposed after Pakistan’s Nuclear tests.
And finally in 1999 “Democracy sanctions” were imposed after General Musharraf’s coup.
🗽 Post-9/11 “War on Terror”
After the September 11 attacks , Pakistan which was Once a Key ally against the Soviets , was again dragged into the War on Terror , By the then US President Bush by terrorizing & threatening the Then Martial Law Administrator , Pervez Musharraf , that if he say No for Cooperation in War On Terror, then they ll bombed , and send back Pakistan to Stone Age, for which Pervez Musharraf , surrendered , and finally , Washington designated Pakistan a major non-NATO ally and channeled billions of dollars in military and economic assistance as Islamabad became central to US operations in Afghanistan.
As Pakistan Cooperation was much needed in the War on Terror, leading President Bush to waive the Glenn, Symington, and Pressler sanctions.
Once again Pakistan was Hand in Glove with US, and became a major non-NATO ally, receiving over $30 billion in aid.
Pakistan which has not recovered, from the Last Spillover of the Terrorism, after Afghan Jihad, was once again started inter acting with Taliban, with which the Taliban were in every nook & corner of Pakistan, from FATA to Swat, and even in Karachi, and Terrorism was on the verge of Peak, and the Organizations nurtured under such surrounding of Ethnic, Linguistic, Sectarian were, roaming and messing around all over Pakistan.
🏔️ Post-US Withdrawal from Afghanistan (2021)
The US blamed Pakistan for their failure in Afghanistan, leading to suspended aid, halted military training, and sanctions on Pakistani companies.
Lately after all this A US Senate bill was introduced seeking sanctions against Pakistan for its role in Afghanistan, and a Bill named Afghanistan Counterterrorism Act (2021) was introduced.
🕋 Formation of Taliban-led Government
The US has applied international pressure, particularly through the UN, making it difficult for Pakistan to engage with Taliban leaders due to UN travel bans and asset freezes.
Because of this, The Taliban’s reliance on Pakistan has decreased, reducing Islamabad’s leverage. The US continues to press Pakistan to act against Taliban and Haqqani networks.
📜 Recent Sanctions (2024-2025)
In December 2024, the US imposed new sanctions on Pakistan’s missile program, including on the National Development Complex (NDC).
In 2025, the US expanded its trade blacklist to include 19 Pakistani companies.
The latest request therefore comes against a long history in which geopolitics has frequently influenced US economic engagement with Pakistan.
Islamabad is Once again seeking a direct financial backstop from Washington. The timing has drawn attention because it comes immediately after Pakistan’s role in facilitating diplomacy during the Iran conflict.
The Iran diplomacy factor
Reuters reported that Islamabad’s request followed its involvement in brokering talks linked to the Iran conflict, which significantly raised Pakistan’s diplomatic profile. Pakistani officials are believed to view that their role as an opportunity to reset ties with Washington after years of strained relations.
Pakistan’s Strategic Geo-Political Location:
Even after the US military withdrawal, Afghanistan remains an important part of Washington’s regional security calculations.
Pakistan shares a 2,640-km border with Afghanistan, 909Km of Iran, 596 Km of China, and 2400Km of India, and 740km of Disputed Kashmir, and above all 1046Km of Arabian Sea, with Karachi & Gwadar Sea Ports, which are called the Gateway of the Central Asian Republics, rather even if given a Chance, it is a Hot Water Gateway for the Russian Federation, So the Geo Political Position is so lucrative, that US can never think of Losing Pakistan, By Hook or Crook. Now it is up to Pakistan, how to play the Game, that as we call in English Literature “Something for Nothing”.
The United States still depends on regional partners for intelligence gathering, counterterrorism coordination and monitoring whole of the Region, and exclusively after the War with Iran, as Iran has rose up as the Regional Power, with its Backing by China & Russian, who have openly and discreetly help Iran to show Power to the US & Israel in this ongoing war, for which they were even not prepared for.
The Next Super Power of the World – China .
China is another important factor. Pakistan remains China’s closest strategic partner in South Asia and hosts the China-Pakistan Economic Corridor (CPEC),
Beijing’s flagship Belt and Road Initiative project. Over the past decade, Chinese loans, investments and deposits have become one of Pakistan’s principal financial lifelines.
It was with Beijing’s Help, that gave Pakistan a Hand Over Indian Aggression in May 2025, And it is due to which Pakistan has come into limelight once again , as India was even clueless , how Pakistan defeated it , by Hitting its 7 fighter Jets , including French Raffales , which were supposed to be India’s Jewels in the Crown , and it was all with China’s help with its J 20 Jets, Missiles its Digital & Satellite sharing that Indian were beaten like Sitting Ducks , and after that even US attitude towards Pakistan , changed and finally the Diplomacy In getting a MoU signed by Iran & US , was the final Nail in the Coffin for Not only India but a surprise for whole of the World.
Reuters noted that Pakistan’s foreign exchange reserves still depend heavily on financing rollovers and deposits from China, Saudi Arabia, & UAE ,Which may be very Fragile at moments.
It was noticed in the Iran US War as the Last moment Ditch by the UAE , which is called the Brothers of Pakistan , which was not his first such act, but previously also was involved in Back Stabbing , now it is also being noted , that UAE was also involved in fanning terrorism through Sectarian , ethnic & Linguistic organization in Pakistan , Just to Keep Karachi under Privileged , as Karachi is the Back Bone of Pakistan’s economy, and if Karachi flourishes , Dubai cannot sustain , because of the Resources Karachi have as compared to Dubai , as Karachi is established for the last 100years and was the Hub of International Trade till Mid 80’s , But after that Lot of conspiracies were Hatched to Promote Dubai , and in this regard Karachi was pushed to the wall by financing terrorism , by their cronies , and for the Last 40 years Karachi is facing the Back Lash , and the Rulers of Pakistan cannot speak & complain , as the UAE was giving financial support in shape of financial Assistance , and Now In the Recent Iran US war , they tried to Push Pakistan into War against Brotherly Muslim Country Iran , which Pakistan’s Leadership declined , So to Put Pakistan in a Difficult Situation , US$3.5Billion given as the Financial Assistance , was Called off, and was asked to Reimburse urgently, which Pakistan did wisely , with the Help of China & Saudi Arabia.
The Best way for Pakistan is to take the alternative Route , which is even quite Possible, as being the facilitator of US Iran Negotiations , that to instead of asking for Financial Assistance from any country , they Should ask US to waive the Sanctions for Pakistan Iran Gas & Energy Export , as they did for India for the Import of Oil & Gas from Iran , as Pakistan is in much better & Sound Partner of US in all its previous Hard times , whether it was Cold War , or the War on Terror , So Now it is time for Pakistan to ask & negotiate with US on their terms , and Once the Sanctions are Removed , the convenient terms with Iran should also be negotiated , and for which Iran is already shown their willingness to sell at lucrative terms & Conditions.
Iran Pakistan Gas Pipeline which is already laid till the Iran’s Border, Just the Pakistan side has to be laid on war footing to lay down to connect it to the Pakistan’s Gas Network, and once the connection is done. The Pakistani Industrial & Residential consumers can get a source of Cheap Energy, the Sick Pakistani Industry will Kick Start once again, giving a much needed Boost to Pakistan’s Economy ,in shape of its Export , and once the Pakistani Industry becomes cost effective , DFI will also start flowing from all Parts of the World, and thus there will be no need for Financial assistance from any Country , and Pakistan can Progress & Prosper on its own terms , without taking dictation from any Super Power of the World.