Pakistan has sought a USD 10 billion exchange stabilisation facility from the United States in an effort to strengthen its foreign exchange reserves, ease pressure on the rupee and reduce dependence on multilateral financing, according to a Reuters report citing a source familiar with the matter.

The request was reportedly made to US Treasury Secretary Scott Bessent following a meeting with Pakistan’s Finance Minister Muhammad Aurangzeb in Washington on Tuesday. If approved, the facility would provide dollar support for up to five years while Pakistan continues implementing reforms under its International Monetary Fund (IMF) programme.

Pakistan Seeks Dollar Support From US

Reuters reported that Islamabad has requested a Bilateral Exchange Stabilisation Support Facility worth USD 10 billion with a maturity of up to five years.

According to the report, the proposed facility is aimed at boosting Pakistan’s foreign exchange reserves, reducing pressure on the Pakistani rupee and lowering the country’s reliance on multilateral financial assistance as it pursues fiscal and monetary reforms.

The request follows discussions between Finance Minister Muhammad Aurangzeb and US Treasury Secretary Scott Bessent in Washington.

Pakistan Highlights Economic Challenges

In a statement issued after the meeting, Pakistan’s Finance Ministry said Aurangzeb briefed the US Treasury Secretary on the country’s progress towards macroeconomic stability and export-led growth.

The ministry said the Finance Minister also highlighted the impact of regional geopolitical developments on Pakistan’s economy.

“Finance Minister Senator Muhammad Aurangzeb briefed the US Treasury Secretary on Pakistan’s journey toward macroeconomic stability, sustainable, and export-led growth. The Finance Minister also highlighted the negative impacts of the regional situation on the Pakistani economy,” the statement said.

It added that Pakistan sought greater US cooperation to improve access to international capital markets, strengthen foreign exchange reserves and enhance the country’s sovereign credit ratings.

“Desire for US cooperation regarding improved access to international capital markets, enhancement in foreign exchange reserves, and increased market access based on sovereign credit ratings,” the ministry stated.

Both sides also reaffirmed their commitment to expanding bilateral economic cooperation, encouraging greater US investment and advancing strategic projects.

Facility Would Be Separate From IMF Programme

Pakistan is currently implementing a USD 7 billion IMF programme that requires politically sensitive reforms, including tax increases, spending controls and structural changes to the economy.

According to Reuters, exchange stabilisation facilities are uncommon arrangements provided by the US Treasury through the Exchange Stabilization Fund. They are intended to strengthen a country’s foreign exchange reserves and stabilise its currency through mechanisms such as dollar funding, swap arrangements or guarantees.

Reuters noted that these facilities differ from the US Federal Reserve’s standing dollar swap lines available to major central banks.

Pakistan Continues to Depend on External Financing

Reuters reported that the last major exchange stabilisation package extended by the United States before Argentina’s 2025 arrangement was provided to Uruguay in 2002. Mexico has also maintained a long-standing swap line with the United States since the 1940s.

Pakistan narrowly avoided a sovereign default in 2023 after securing a USD 3 billion IMF standby arrangement. It subsequently obtained a USD 7 billion Extended Fund Facility, along with an additional USD 1.3 billion loan to strengthen resilience against climate change and natural disasters.

Despite those programmes, Reuters reported that Pakistan’s external reserves remain heavily dependent on IMF disbursements, bilateral assistance and financial rollovers from partners including China and Saudi Arabia, leaving the country exposed to delays in external financing.

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