Pakistan Seeks $10 Billion U.S. Financial Facility to Strengthen Foreign Exchange Reserves
WASHINGTON: Pakistan has formally requested a $10 billion Exchange Stabilization Support Facility from the United States to strengthen its foreign exchange reserves, stabilize the Pakistani rupee, and reduce its reliance on stringent International Monetary Fund (IMF) programmes.
According to a Reuters report, Federal Minister for Finance Senator Muhammad Aurangzeb raised the matter during a meeting with U.S. Treasury Secretary Scott Bessent in Washington. Pakistan has proposed a five-year bilateral Exchange Stabilization Support Facility agreement between the two governments.
The proposed fund is aimed at bolstering Pakistan’s foreign exchange reserves, easing pressure on the rupee, and providing greater financial stability while reducing dependence on IMF-backed economic reforms and borrowing programmes.
The Exchange Stabilization Fund is a rare financial instrument administered by the U.S. Treasury Department that has previously been used to provide dollars, swap lines, or financial guarantees to countries facing economic and foreign exchange challenges. The United States has extended similar support to countries including Argentina in 2025, Uruguay in 2002, and Mexico in the past.
If approved, the facility would not only provide Pakistan with significant financial support but could also improve the country’s international credit profile and strengthen investor confidence in global capital markets.
Pakistan is currently implementing strict fiscal reforms under a $7 billion IMF programme, which includes tax increases and expenditure controls. The country’s foreign exchange reserves remain heavily dependent on financial rollovers from friendly nations, including China and Saudi Arabia.
In April, Pakistan repaid $3.5 billion to the United Arab Emirates, following which Saudi Arabia provided fresh support worth $3 billion. The State Bank of Pakistan has set a target of raising the country’s foreign exchange reserves to a historic level of $20 billion by the end of 2026, a goal for which the proposed U.S. facility could prove instrumental.
Reports further indicate that Pakistan has begun working on several strategic economic and trade partnerships with the Trump administration. These include a stablecoin agreement for cross-border payments with World Liberty Financial, a cryptocurrency venture linked to President Donald Trump’s family, a memorandum of understanding with the U.S. government for the redevelopment of the Roosevelt Hotel in New York owned by Pakistan International Airlines (PIA), and a $1.25 billion financing announcement for American mining investments in the Reko Diq project.
The proposed financial package, if finalized, would mark one of the most significant instances of U.S. economic support sought by Pakistan in recent years and could play a key role in strengthening the country’s macroeconomic stability.
