Finance Minister Muhammad Aurangzeb on Tuesday asked U.S. Treasury Secretary Scott Bessent to provide Pakistan with a $10 billion Exchange Stabilization Support Facility to help strengthen the national economy.
In a statement, Pakistan’s Embassy in Washington said Aurangzeb had sought U.S. support for Pakistan’s road-to-market, based on improved access to international capital markets, higher foreign exchange reserves, and enhanced sovereign credit ratings. However, while it did not make any mention of the $10 billion request, the Reuters news agency said Islamabad was seeking the facility with a maturity of up to five years.
The proposed facility envisions the U.S. government, through the Treasury’s Exchange Stabilization Fund, providing loans or other backstop facilities to Pakistan to bolster its foreign exchange reserves, ease debt pressures, and help stabilize the economy. The U.S. primarily uses the facility to prevent currency instability and, where necessary, support a partner country’s currency through intervention in foreign exchange markets.
Reuters noted the request followed Pakistan’s role in brokering talks over the Iran war, which raised its diplomatic profile and stirred hopes for economic gains from Washington and other partners.