WASHINGTON: Pakistan has requested a $10 billion bilateral exchange stabilisation facility from the United States to strengthen its foreign exchange reserves and reduce pressure on the rupee, according to a source familiar with the matter.
Reuters reported that Islamabad submitted the request to US Treasury Secretary Scott Bessent during Finance Minister Muhammad Aurangzeb’s visit to Washington. The proposed facility would have a maturity of up to five years and, if approved, would help boost Pakistan’s reserves while reducing its reliance on multilateral financing.
The US Treasury declined to comment on the reported request, while Pakistan’s finance ministry did not immediately respond to Reuters’ request for comment.
Why is the facility significant?
The proposed support would provide Pakistan with an additional financial backstop as it continues implementing reforms under its $7 billion International Monetary Fund (IMF) programme.
According to Reuters, exchange stabilisation facilities are rare US Treasury instruments designed to support countries’ foreign exchange reserves and currency stability. Such arrangements are uncommon, with Argentina receiving a similar facility in 2025, while Uruguay last received one in 2002.
During his meeting with Bessent, Aurangzeb highlighted Pakistan’s economic vulnerabilities arising from regional geopolitical developments and called for greater US support to improve access to international capital markets, strengthen foreign exchange reserves, and enhance the country’s sovereign credit ratings, according to Pakistan’s finance ministry.
Pakistan narrowly avoided sovereign default in 2023 after securing an IMF bailout and has since relied on financial assistance from international partners, including China and Saudi Arabia, to support its external financing needs.