Pakistan seeks USD 10 billion US support facility to stabilise economy: Report

Islamabad: Pakistan has reportedly asked the United States for a USD 10 billion Exchange Stabilisation Support Facility to strengthen its economy, according to a report by Dawn.

Pakistan’s embassy in Washington confirmed that Finance Minister Muhammad Aurangzeb made the request to US Treasury Secretary Scott Bessent. The US Treasury has not yet responded to the report.

The proposed facility, which could be routed through the US Treasury's Exchange Stabilisation Fund, may include measures such as currency swaps, financial guarantees and loans to help support Pakistan's economy.

According to an official readout issued by the Pakistani embassy, Aurangzeb also sought US support for Islamabad's "road-to-market" strategy. The plan aims to improve Pakistan's access to international capital markets, increase foreign exchange reserves and strengthen the country's sovereign credit ratings. This approach relies on maintaining strict International Monetary Fund (IMF) discipline to control fiscal deficits and inflation.

The official statement, however, did not mention the USD 10 billion amount.

Diplomatic sources in Washington told Dawn that there were "strong chances" of the request being approved. One source said the Trump administration was keen to remain engaged with Pakistan and had repeatedly expressed its willingness to support efforts to strengthen the country's economy.

Pakistan's economic recovery remains fragile, with the country continuing to rely heavily on external financial assistance.

The country came close to default in 2023 before securing a USD 3 billion IMF loan programme. Pakistan is currently implementing economic reforms under a USD 7 billion IMF programme approved in 2024, which requires the government to meet a series of policy conditions.

PTI