ISLAMABAD, July 26 – Pakistan has asked the United States to establish a $10 billion Exchange Stabilization Support Facility to help shore up its foreign exchange reserves, ease pressure on the rupee and reduce reliance on International Monetary Fund (IMF) financing, according to two sources familiar with the request.
The proposal was presented by Finance Minister Muhammad Aurangzeb in a letter delivered during a meeting with U.S. Treasury Secretary Scott Bessent on Tuesday.
If approved, the facility would provide Pakistan with access to emergency dollar liquidity for up to five years, strengthening the country’s financial position as it continues implementing IMF-backed economic reforms.
The request comes after Pakistan played a diplomatic role in efforts to broker talks over the Iran conflict, boosting Islamabad’s international profile and fuelling expectations it could leverage its mediation efforts into stronger economic ties with Washington.
The U.S. Treasury declined to comment, while Pakistan’s finance ministry did not immediately respond to Reuters’ request for comment. In a statement after the meeting, the ministry said Aurangzeb had sought greater U.S. support to improve Pakistan’s access to international capital markets, increase foreign exchange reserves and strengthen its sovereign credit rating.
Pakistan remains under a $7 billion IMF programme that has required higher taxes, spending restraint and economic reforms. While the programme has helped stabilise the economy, the country remains dependent on official financing and support from partners including China and Saudi Arabia.
An exchange stabilisation facility would be an uncommon form of U.S. financial assistance, providing dollar liquidity or guarantees to help countries support their currencies and foreign exchange reserves. Such facilities have been used sparingly, with Argentina receiving one in 2025 and Uruguay in 2002.
Pakistan narrowly avoided default in 2023 after securing a $3 billion IMF standby arrangement before later obtaining a $7 billion Extended Fund Facility and an additional $1.3 billion climate resilience loan.
Despite improvements, Pakistan’s economy remains vulnerable to external shocks. Ratings agency Fitch has said IMF reforms have strengthened the country’s financing capacity, but warned that higher energy costs and regional instability could quickly erode foreign exchange reserves.
Foreign investment has also remained subdued because of recurring economic crises, policy uncertainty, security concerns and Pakistan’s speculative-grade credit rating, which continues to limit its access to international financial markets.
