Pakistan has reportedly asked the United States for a $10 billion Bilateral Exchange Stabilisation Support Facility, a move aimed at strengthening the country’s foreign exchange reserves and easing pressure on the Pakistani rupee.
According to Reuters, the request was made to US Treasury Secretary Scott Bessent and, if approved, would provide Pakistan with financial support for up to five years.
Neither the US Treasury Department nor Pakistan’s Finance Ministry has officially confirmed the reported request. The US Treasury declined to comment, while Pakistan’s ministry did not immediately respond to Reuters’ inquiry outside business hours.
Finance Minister Raises Economic Concerns in Washington
The reported request comes after Finance Minister Muhammad Aurangzeb met US Treasury Secretary Scott Bessent in Washington.
According to a statement issued by Pakistan’s Finance Ministry, Aurangzeb highlighted the country’s economic vulnerability to regional geopolitical developments and sought greater US support for Pakistan’s economic agenda.
The ministry said Pakistan requested enhanced cooperation to improve access to international capital markets, strengthen foreign exchange reserves, and improve the country’s sovereign credit ratings.
However, the official statement did not specifically mention the reported $10 billion stabilisation facility.
What Is an Exchange Stabilisation Facility?
Exchange stabilisation facilities are relatively rare financial arrangements provided through the US Treasury’s Exchange Stabilization Fund (ESF).
Such facilities may include dollar financing, currency swaps, or guarantees designed to help countries strengthen foreign exchange reserves and stabilize their currencies during periods of financial stress.
Unlike the US Federal Reserve’s permanent swap lines with certain major central banks, these arrangements are typically negotiated on a case-by-case basis.
If approved, the facility could reduce Pakistan’s reliance on multilateral lenders while providing additional support for the country’s external financing needs.
Pakistan Continues IMF Reform Programme
Pakistan is currently implementing a $7 billion International Monetary Fund (IMF) Extended Fund Facility (EFF), which includes fiscal reforms, higher tax collection, expenditure controls, and monetary tightening.
The country also secured a separate $1.3 billion IMF loan to strengthen resilience against climate change and natural disasters.
Although the IMF programme has helped stabilize Pakistan’s economy, the country continues to depend on official external financing, including support from China, Saudi Arabia, and other friendly nations.
FIA Sets Up Cryptocurrency Investigation Unit to Combat Financial Crimes
Foreign Exchange Reserves Remain a Key Challenge
Pakistan narrowly avoided a sovereign default in 2023 after securing an IMF standby arrangement and has since worked to rebuild its foreign exchange reserves.
However, reserve levels remain vulnerable to external debt repayments and fluctuations in bilateral financial support.
According to the State Bank of Pakistan (SBP), foreign exchange reserves are projected to recover to around $20 billion by the end of 2026, approaching their 2021 peak.
Ratings agency Fitch has also noted that Pakistan’s adherence to IMF reforms has strengthened its funding position but warned that higher energy costs and regional instability could continue to put pressure on reserves.
Expanding Economic Engagement With the United States
The reported request comes as Pakistan seeks to deepen economic cooperation with the United States beyond traditional diplomatic ties.
In recent months, both countries have explored cooperation in sectors such as digital finance, cryptocurrency, mining, and infrastructure investment.
Pakistan has signed a stablecoin agreement for cross-border payments with an affiliate of World Liberty Financial, while discussions have also continued regarding the redevelopment of the Roosevelt Hotel in New York and potential US investment in the Reko Diq mining project.
If the reported exchange stabilisation facility is approved, it could provide Pakistan with additional financial flexibility, strengthen investor confidence, and reduce pressure on the country’s external financing requirements.
