Pakistan has formally requested that the United States establish a $10 billion exchange stabilization facility to support the country's economy, according to a source familiar with the discussions.
The request follows Pakistan's role in facilitating talks related to the Iran conflict, which raised expectations that Islamabad would seek economic benefits from Washington and other allies. Pakistani officials asked U.S. Treasury Secretary Scott Bessent to approve a five-year Bilateral Exchange Stabilization Support Facility.
If established, the facility would strengthen Pakistan's foreign currency reserves, help stabilize the Pakistani rupee, and reduce reliance on international lending institutions as the country implements reforms required under its International Monetary Fund program.
The U.S. Treasury declined to comment on the request. Pakistan's Finance Minister Muhammad Aurangzeb met with Bessent in Washington on Tuesday. A ministry statement said Aurangzeb discussed Pakistan's economic vulnerability to regional geopolitical tensions but did not mention the $10 billion request. "Senator Aurangzeb sought greater U.S. support for Pakistan's road to market, underpinned by improved access to international capital markets, higher foreign exchange reserves, and enhanced sovereign credit ratings," The statement said, adding that both sides reaffirmed commitment to deepening bilateral economic cooperation.
Pakistan operates under a $7 billion IMF program requiring tax increases, spending cuts, and economic reforms. Exchange stabilization facilities, provided through the U.S. Exchange Stabilization Fund, can supply dollar liquidity, currency swaps, or guarantees to strengthen reserves and support currency. They serve as emergency funding sources distinct from the Federal Reserve's permanent swap arrangements with major central banks.
Argentina received such assistance in 2025, the first new facility since Uruguay in 2002, excluding Mexico's longstanding arrangement valued at $9 billion.
Pakistan narrowly avoided sovereign default in 2023 after securing a $3 billion IMF standby package, later obtaining a $7 billion Extended Fund Facility and a $1.3 billion climate resilience loan. The country remains heavily dependent on official financing, loan rollovers, and support from China and Saudi Arabia. In April, Pakistan repaid roughly $3.5 billion to the United Arab Emirates while Saudi Arabia provided $3 billion in new support.
Pakistan's central bank expects foreign exchange reserves to reach approximately $20 billion by the end of 2026. Analysts say a U.S.-backed facility would provide liquidity and signal strong political support, helping reduce reliance on IMF disbursements and emergency rescues.
IMF reforms have stabilized the economy but at political cost through higher taxes and reduced government spending. Fitch Ratings noted that Pakistan's compliance with its program strengthened financing prospects, though rising energy prices and regional tensions could erode reserves.
Foreign investment has been limited by repeated economic crises, policy uncertainty, security concerns, and a narrow export base. Pakistan's sub-investment-grade credit rating increases borrowing costs and restricts capital market access.
Recently, Pakistan has strengthened economic ties with the Trump administration through cryptocurrency, real estate, and mining cooperation, including a stablecoin agreement with a World Liberty Financial affiliate, a memorandum of understanding to redevelop the Roosevelt Hotel in New York, and efforts to attract American investment in the Reko Diq mining project, where the U.S. Export-Import Bank announced $1.25 billion in financing.