India, July 26 -- Pakistan's formal request to the United States for a $10 billion Exchange Stabilization Support Facility has brought into focus the country's continued dependence on external financing to sustain its economy and foreign exchange reserves. While the request itself is unprecedented in the context of U.S.-Pakistan financial relations, it comes at a time when Islamabad continues to receive billions of dollars in support from China, the International Monetary Fund (IMF), the World Bank and key Gulf partners.
Pakistan has sought a five-year U.S. Treasury-backed facility that would strengthen its foreign exchange reserves and provide an additional financial cushion while the country continues implementing IMF-backed economic ref...