Pakistan seeks US financial support and expands domestic credit access

Pakistan is pursuing dual strategies to stabilize its economy through increased domestic credit access and a request for significant international financial support. The government is expanding inclusive financing for sectors including housing, agriculture, small and medium-sized enterprises (SMEs), exports, information technology, and renewable energy to drive private-sector-led growth.

In the housing sector, finance has seen notable growth, with total housing finance rising from approximately Rs294 billion in June to Rs307 billion by mid-August. Under the Wazir-e-Azam Apna Ghar Program, applications increased by 52 percent since June, and approved financing nearly doubled to Rs279 billion. This expansion is supported by revised Prudential Regulations for Housing Finance from the State Bank of Pakistan.

Simultaneously, Pakistan has formally requested a financial stabilization facility of up to $10 billion from the United States. Officials described the proposed Bilateral Exchange Stabilization Support Facility as a financial backstop intended to strengthen the country’s foreign-exchange position, support currency stability, and help regain access to international capital markets. Discussions with Washington are ongoing, and a response is expected within the next few months.