ISLAMABAD/WASHINGTON: Pakistan has reportedly approached the United States for a $10 billion Exchange Stabilisation Facility, seeking critical financial support to strengthen its foreign exchange reserves, stabilize the rupee, and improve overall economic resilience.
According to a source familiar with the discussions, Islamabad has proposed the creation of a Bilateral Exchange Stabilisation Support Facility with a repayment period of up to five years. If approved, the arrangement would provide Pakistan with a significant financial cushion while supporting ongoing economic reforms under its International Monetary Fund (IMF) programme.
The request comes shortly after Pakistan played a diplomatic role in facilitating dialogue during the recent tensions between the United States and Iran, a development that has elevated Islamabad’s international profile and opened the door to broader economic engagement with Washington.
Aurangzeb Raises Economic Concerns in Washington
Finance Minister Muhammad Aurangzeb met US Treasury Secretary Scott Bessent in Washington on Tuesday, where the two sides discussed bilateral economic cooperation and Pakistan’s financial outlook.
While the Finance Ministry’s official statement did not mention the reported request for the $10 billion facility, it confirmed that Aurangzeb highlighted Pakistan’s economic vulnerability to regional geopolitical developments and emphasized the need for stronger international financial support.
The statement added that the finance minister sought greater US assistance in improving Pakistan’s access to international capital markets, increasing foreign exchange reserves, and strengthening the country’s sovereign credit profile.
Both governments also reaffirmed their commitment to expanding economic cooperation, attracting greater American investment, and advancing strategic development initiatives.
Support Could Ease Pressure on Economy
Economic experts believe that securing such a facility would provide immediate relief to Pakistan’s external financing position by boosting foreign exchange reserves and reducing pressure on the local currency.
The additional financial backing could also lower the country’s dependence on emergency funding from multilateral lenders while reinforcing investor confidence in Pakistan’s economic recovery.
However, the proposal remains under consideration, with the US Treasury Department declining to comment on the reported request. Pakistan’s Ministry of Finance has also not issued an official response regarding the matter.
Pakistan Continues IMF-Backed Reforms
Pakistan is currently implementing reforms under a $7 billion IMF programme, which requires the government to pursue fiscal discipline through higher tax revenues, controlled public spending, and structural economic reforms.
Analysts say a US-backed exchange stabilisation facility would complement these reforms by strengthening the country’s financial buffers without replacing its IMF commitments.
Exchange stabilisation facilities are rarely extended by the United States and are generally provided through the US Exchange Stabilization Fund (ESF). Such mechanisms are designed to help partner countries stabilize their currencies, improve foreign exchange liquidity, and manage economic shocks during periods of financial uncertainty.
If approved, the proposed package would mark one of the largest bilateral financial support arrangements between Pakistan and the United States in recent years and could significantly strengthen Islamabad’s efforts to achieve long-term macroeconomic stability.
