Pakistan seeks USD 10 billion US facility for forex stability

Pakistan has requested a USD 10 billion Exchange Stabilisation Support Facility from the United States to strengthen its foreign exchange position and reassure international investors. Finance Minister Muhammad Aurangzeb stated that the request has been submitted to the US Treasury Department and negotiations are currently underway, though no agreement has been finalized.

Rather than seeking a conventional loan or credit line, the initiative is intended to signal currency and foreign exchange stability to international capital markets. The move is part of a broader strategy to shift Pakistan away from a financing model reliant on short-term bilateral rollovers and emergency assistance from friendly nations toward market-based financing with longer repayment periods.

Pakistan is currently implementing a USD 7 billion assistance programme with the International Monetary Fund (IMF) following a period of severe external payment pressure that nearly led to default in 2023.