The Government of Pakistan has formally requested a $10 billion [1] exchange-stabilization facility from the U.S. Treasury Department.
This request comes as Pakistan seeks to shore up its foreign-exchange reserves and reduce the pressure of external payments. The move follows a period of severe economic instability that saw the country come close to default in 2023 [1].
Finance Minister Muhammad Aurangzeb delivered the request in a letter to U.S. Treasury Secretary Scott Bessent on Tuesday [2]. The proposal asks for a facility with a maturity term of up to five years [2].
Officials said the facility is intended to bolster reserves and provide a buffer against currency volatility. The bid was submitted to the Treasury Department in Washington, D.C. [3].
Beyond immediate financial needs, the request follows Pakistan's diplomatic involvement in talks related to Iran [2]. The government hopes the facility will provide long-term stability to the economy, preventing a recurrence of the crisis faced three years ago.
While the U.S. Treasury has not yet announced a decision, the scale of the $10 billion [1] request underscores the depth of the liquidity challenges facing the Pakistani state. The facility would represent a significant injection of capital into the nation's central bank reserves.
“Pakistan has formally requested a $10 billion exchange-stabilisation facility from the U.S. Treasury”
This request signals Pakistan's continued reliance on external bilateral support to avoid sovereign default. By bypassing traditional multilateral lenders like the IMF for this specific facility, Pakistan is leveraging its diplomatic relationship with the U.S. to secure immediate liquidity. The outcome will likely depend on U.S. strategic interests in the region and Pakistan's ability to demonstrate fiscal discipline.
