Pakistan has formally requested a $10 billion exchange stabilization facility from the United States in an effort to strengthen its foreign exchange reserves and stabilize its economy, according to a source familiar with the matter. If approved, the facility would provide a significant financial cushion for the cash-strapped nation.
The proposed agreement would have a maturity period of up to five years and is designed to reduce Pakistan’s dependence on multilateral lenders such as the International Monetary Fund (IMF). The support would also help reinforce the country’s ongoing fiscal and monetary reforms under its IMF-backed economic program.
Pakistan’s request reportedly follows its increased diplomatic engagement in regional affairs, particularly its role in discussions surrounding the Iran conflict, which has raised expectations of stronger economic cooperation with Washington. Finance Minister Muhammad Aurangzeb discussed Pakistan’s economic challenges with U.S. Treasury Secretary Scott Bessent, although neither side publicly confirmed the funding request. Both the U.S. Treasury and Pakistan’s Finance Ministry declined to comment on the matter.
Pakistan has previously relied on IMF bailout programs and financial assistance from countries including China and Saudi Arabia to avoid default. Despite recent economic improvements, the country continues to face pressure from limited foreign exchange reserves and a weak credit profile. The government is also exploring broader economic partnerships with the United States in areas such as mining, real estate, and cryptocurrency.
If approved, the proposed facility would not only provide financial stability but also signal stronger economic ties between Pakistan and the United States.