Washington/Islamabad, July 22: Pakistan has reportedly requested a US$10 billion bilateral financial support facility from the United States in an effort to strengthen its fragile economy, boost foreign exchange reserves and stabilize the Pakistani rupee.
According to international media reports, Islamabad has asked U.S. Treasury Secretary Scott Bessent to consider establishing a Bilateral Exchange Stabilization Support Facility with a maturity period of up to five years.
If approved, the facility would provide Pakistan with additional foreign exchange support, reduce pressure on its currency and lessen its dependence on multilateral lenders while the country continues implementing economic reforms under its International Monetary Fund (IMF) programme.
The reported request comes as Pakistan continues to recover from one of the most severe economic crises in its history. Although the country has avoided sovereign default through successive IMF assistance packages, it remains heavily dependent on external financing from international institutions and friendly nations.
The proposal also follows Pakistan’s recent diplomatic engagement during the conflict involving the United States and Iran, where Islamabad sought to facilitate dialogue and reduce regional tensions. Some observers believe Pakistan hopes its diplomatic role may strengthen its case for greater economic cooperation with Washington.
Neither the U.S. Treasury Department nor the Government of Pakistan has officially confirmed that a US$10 billion facility has been approved.
However, Pakistan’s Finance Minister Muhammad Aurangzeb confirmed that he discussed the country’s economic vulnerabilities and regional geopolitical challenges during meetings with U.S. Treasury officials this week.
According to Pakistan’s Foreign Ministry, both countries reaffirmed their commitment to expanding bilateral economic cooperation, encouraging greater U.S. investment and improving Pakistan’s access to international capital markets.
Pakistan is currently implementing a US$7 billion IMF Extended Fund Facility, which requires significant fiscal reforms, including increased taxation, tighter government spending and broader structural changes to strengthen the economy.
In addition, the IMF has approved another US$1.3 billion package aimed at helping Pakistan improve resilience against climate change and natural disasters.
Despite these programmes, Pakistan’s foreign exchange reserves continue to rely heavily on IMF disbursements and financial support from partners such as China and Saudi Arabia. Any delays in external financing could place renewed pressure on the country’s economy and currency.
Pakistan’s central bank has projected that its foreign exchange reserves could rise to approximately US$20 billion by the end of 2026, provided current reform efforts continue and external funding remains available.
The requested support would reportedly come through the U.S. Exchange Stabilization Fund, a rarely used mechanism designed to assist countries in stabilizing their currencies through loans, swap arrangements or financial guarantees. Such facilities are uncommon, with only a handful of countries receiving similar assistance in recent decades.
While discussions appear to be ongoing, no decision has yet been announced by U.S. authorities. If approved, the proposed facility would represent one of the most significant bilateral financial support arrangements ever extended by the United States to Pakistan and could provide a substantial boost to Islamabad’s economic stabilization efforts.