Pakistan seeks USD 10bn US economic support facility: Report

ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb has asked US Treasury Secretary Scott Bessent to provide Islamabad with a USD 10 billion Exchange Stabilisation Support Facility to help strengthen its economy, according to a media report.

Exchange Stabilisation Support Facility, often routed through the US Treasury's Exchange Stabilisation Fund, is a financial backstop mechanism that includes currency swaps, financial guarantees and loans, among other measures.

The Dawn newspaper reported on Wednesday that it received confirmation on the information about Pakistan's request from its embassy in Washington. The mission, however, did not share further details with the newspaper.

Dawn also sought a response from the US Treasury, but did not get any.

An official readout issued by the embassy noted that Aurangzeb had sought US support for Pakistan’s road-to-market strategy, based on improved access to international capital markets, higher foreign exchange reserves, and enhanced sovereign credit ratings.

Pakistan’s road-to-market refers to a strategic and economic strategy to regain full, independent access to international capital markets and boost foreign exchange reserves. This approach relies on maintaining strict International Monetary Fund (IMF) discipline to control fiscal deficits and inflation.

The official readout, however, did not mention the USD 10 billion amount.

Diplomatic sources in Washington told Dawn there were “strong chances” that the USD 10 billion stabilisation request would be approved.

One source told the newspaper that the Trump administration “has a keen interest in remaining engaged” with Pakistan and has “more than once pledged” to help strengthen the country’s economy.

Pakistan’s economic recovery has been fragile, and the country remains heavily dependent on foreign assistance.

It narrowly escaped default in 2023 after the IMF approved a USD 3 billion loan programme. Islamabad is currently implementing economic reforms under a USD 7 billion IMF programme approved in 2024, which is tied to a series of policy conditions.