Pakistan is seeking a $10 billion bilateral Exchange Stabilisation Support Facility from the United States as Islamabad looks to strengthen foreign exchange stability, build investor confidence and improve its access to international capital markets.
Finance Minister Muhammad Aurangzeb has confirmed that Pakistan formally requested the facility from the US Treasury, with negotiations currently underway. However, no final agreement has been reached and the funds have not been approved or released.
Pakistan Expects US Response in Coming Months
The latest development comes as Pakistan waits for Washington’s response to the proposed facility. Adviser to the Finance Minister Khurram Schehzad said discussions with US officials have been constructive and that Pakistan expects a response within the next couple of months.
Schehzad said the proposed facility could serve as a potential financial backstop and send a confidence signal to markets, potentially helping Pakistan attract private capital.
The proposal reportedly envisages a facility with a maturity of up to five years.
What Would the $10 Billion Facility Do?
The proposed arrangement is intended to strengthen Pakistan’s external financial position rather than operate simply as a conventional loan.
If approved and eventually drawn, the facility could help Pakistan increase its foreign exchange liquidity, reduce pressure on the rupee and provide additional confidence to investors and international lenders.
A bilateral stabilisation facility could also help Pakistan manage external payment pressures and strengthen confidence in its ability to meet international financial obligations.
Importantly, the proposed $10 billion should not be described as money that Pakistan has already received. A facility or credit line represents financial support that may become available under agreed conditions; it does not mean the full amount is immediately transferred to Pakistan’s reserves.
Request Comes as Pakistan Pushes for Market-Based Financing
Pakistan is simultaneously attempting to move away from repeated bilateral financing rollovers and strengthen its position in international capital markets.
Aurangzeb has said the proposed US facility is intended to support foreign exchange stability and send a positive signal to international investors rather than function as a conventional loan or credit line.
The government is also seeking greater US involvement in trade, investment and development projects. Pakistan’s Finance Ministry said Aurangzeb discussed economic cooperation with US Treasury Secretary Scott Bessent, including improved access to international capital markets, higher foreign exchange reserves and stronger sovereign credit ratings.
During his Washington visit, Aurangzeb also met representatives of the US International Development Finance Corporation and US EXIM Bank to discuss private-sector projects, infrastructure, energy, information technology, minerals, agriculture and other areas of economic cooperation.
IMF Programme Remains Important
Pakistan’s request comes as the country continues implementing economic reforms under its IMF programme.
The proposed US facility could potentially complement Pakistan’s broader efforts to strengthen reserves and restore confidence in the country’s external financial position. However, approval from Washington would not remove the need for continued fiscal discipline, structural reforms and effective economic management.
The facility would also need to be evaluated in terms of its eventual conditions, cost, maturity and permitted uses before its full economic impact could be determined.
No $10 Billion Has Been Approved Yet
For now, the most important point is that Pakistan has requested the facility, but the United States has not yet approved it.
The request was initially reported in July, when Pakistani officials sought a bilateral exchange stabilisation facility of up to $10 billion from Washington. Pakistan’s Finance Ministry subsequently confirmed broader discussions with the US on strengthening reserves, market access and economic cooperation.
By August, Finance Minister Aurangzeb had publicly confirmed the formal request, while officials said negotiations remained ongoing.
Pakistan is now waiting for Washington’s response, with officials indicating that a decision could come within the coming months.
If approved, the facility could provide an additional layer of financial support and potentially improve market confidence. Until then, however, the $10 billion remains a request under negotiation rather than confirmed funding.
Disclaimer: This article is for informational purposes only and is based on publicly available reports and official statements. The accompanying image is AI-generated and is provided for illustrative purposes only. It does not represent an actual meeting, transaction or transfer of money between Pakistani and US officials.
