Pakistan Requests $10 Billion Exchange Stabilisation Facility From US Treasury

The Government of Pakistan has requested an Exchange Stabilisation Support Facility of up to $10 billion from the United States Department of the Treasury. Finance Minister Muhammad Aurangzeb stated that the proposal is currently under consideration, with a decision expected by September.

Unlike a traditional loan or credit line, the facility is designed to strengthen foreign exchange reserves and reduce pressure on the rupee. The move aims to transition Pakistan away from a reliance on short-term bilateral rollovers and emergency financing toward market-based financing with longer maturities of five, seven, or 10 years. This request follows Pakistan's role in facilitating diplomatic engagement regarding the US-Iran conflict.

Simultaneously, Pakistan is implementing a $7 billion International Monetary Fund assistance program and negotiating with the US Export-Import Bank and the U.S. International Development Finance Corporation to secure longer repayment periods for bilateral loans. The government is also discussing $1.3 billion in commercial refinancing with China. These efforts are part of a broader strategy to improve the nation's sovereign credit rating to at least B+.