USD 10 Billion Exchange Stabilization Fund Request: Economic and Political Implications for Pakistan

Pakistan has requested a USD 10 billion loan from the US under the Exchange Stabilization Fund (ESF), a specialized but relatively less prevalent funding mechanism. So far, government officials from either country have not formally acknowledged the request. This IPS Insight examines the funding facility, the rationale for the loan, its potential uses, and its economic, political, and regional implications for Pakistan.