Pakistan has formally requested a $10 billion Exchange Stabilization Support Facility from the United States in a move that could significantly strengthen the country’s foreign exchange reserves and ease pressure on the rupee if approved.
According to a source familiar with the matter, Islamabad has approached US Treasury Secretary Scott Bessent with a proposal for a Bilateral Exchange Stabilization Support Facility worth $10 billion. The requested facility would have a maturity period of up to five years and is aimed at improving Pakistan’s financial stability while reducing its dependence on multilateral lenders.
The request comes as Pakistan seeks to capitalize on its growing diplomatic engagement with Washington following its reported role in facilitating talks related to the Iran conflict. Officials believe stronger political ties could also pave the way for greater economic cooperation between the two countries.
If approved, the facility would provide Pakistan with a substantial liquidity buffer, helping the country strengthen its foreign exchange reserves, stabilize the Pakistani rupee, and improve investor confidence. It would also reduce reliance on emergency financing from international institutions while supporting the government’s ongoing economic reform agenda.
The US Treasury has declined to comment on the reported request, while Pakistan’s Ministry of Finance has not officially confirmed the development.
Finance Minister Muhammad Aurangzeb met US Treasury Secretary Scott Bessent in Washington earlier this week to discuss bilateral economic cooperation. According to the Finance Ministry, Aurangzeb highlighted the vulnerability of Pakistan’s economy to regional geopolitical developments and sought greater US support for improving access to international capital markets, increasing foreign exchange reserves, and strengthening Pakistan’s sovereign credit profile.
The ministry stated that both countries reaffirmed their commitment to expanding economic cooperation, encouraging greater US investment in Pakistan, and advancing strategic projects. However, the official statement did not specifically mention the reported $10 billion stabilization facility.
Pakistan remains under a $7 billion International Monetary Fund (IMF) Extended Fund Facility, which requires the government to implement difficult fiscal reforms, including higher taxes, tighter public spending, and structural economic changes. While these reforms have helped stabilize the economy, they have also increased financial pressure on businesses and households.
Exchange stabilization facilities are rare financial arrangements provided through the US Treasury’s Exchange Stabilization Fund. Unlike the Federal Reserve’s permanent currency swap lines with major central banks, these facilities offer temporary dollar liquidity, guarantees, or currency support to countries experiencing external financial pressures.
Such arrangements have been used only sparingly in recent decades. Argentina received a similar package in 2025, while Uruguay benefited from one in 2002. Mexico also maintains a long-standing stabilization arrangement with the United States dating back to the 1940s.
Pakistan narrowly avoided sovereign default in 2023 after securing a $3 billion IMF standby agreement, followed by a larger $7 billion Extended Fund Facility and an additional $1.3 billion climate resilience loan. Despite these financial packages, the country’s foreign exchange reserves continue to depend heavily on IMF disbursements, rollovers from friendly nations, and financial support from partners such as China and Saudi Arabia.
Earlier this year, Pakistan repaid approximately $3.5 billion to the United Arab Emirates, equivalent to nearly one-fifth of its reserves at the time, before Saudi Arabia extended fresh financial assistance worth $3 billion to stabilize the country’s external position.
The State Bank of Pakistan has projected that foreign exchange reserves could rise to nearly $20 billion by the end of 2026 if economic reforms continue and external financing remains available.
Analysts believe that securing a US-backed exchange stabilization facility would send a strong positive signal to global investors and financial markets. Besides providing much-needed liquidity, it could improve Pakistan’s credit outlook, strengthen confidence in the rupee, and reduce borrowing costs in international markets.
Pakistan has also been working to deepen economic ties with the United States through cooperation in sectors including digital assets, mining, energy, and infrastructure. Recent initiatives include agreements related to cross-border digital payments, investment in the Reko Diq mining project, and discussions regarding the redevelopment of the Roosevelt Hotel in New York.
If approved, the proposed $10 billion facility would represent one of the most significant examples of financial cooperation between Pakistan and the United States in recent years and could play an important role in supporting Pakistan’s long-term economic stability.
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