Pakistan has reportedly approached the United States for a $10 billion currency support facility to strengthen its foreign exchange reserves and improve economic stability. According to a Reuters report citing a source familiar with the matter, the request comes after Islamabad’s diplomatic role in facilitating discussions related to the Iran conflict, a development that has reportedly improved its standing with Washington.
If approved, the proposed financial arrangement could provide Pakistan with much-needed support as it continues implementing economic reforms under its International Monetary Fund (IMF) programme.
Pakistan Requests $10 Billion Currency Support From the US
According to Reuters, Pakistan has formally requested a Bilateral Exchange Stabilisation Support Facility from the US government. The proposal has reportedly been submitted to US Treasury Secretary Scott Bessent and seeks financial assistance with a maturity period of up to five years.
The facility is designed to help Pakistan reinforce its foreign exchange reserves, stabilise its currency, and reduce financial pressure while supporting the country’s broader economic recovery.
Facility Could Boost Foreign Exchange Reserves
If the United States agrees to the proposal, the financial package could:
- Increase Pakistan’s foreign exchange reserves
- Reduce pressure on the Pakistani rupee
- Lower dependence on emergency financial assistance
- Improve investor confidence in the country’s economy
The initiative would also complement Pakistan’s ongoing fiscal and monetary reforms under its IMF-backed programme.
Pakistan Continues IMF-Led Economic Reforms
Pakistan is currently implementing reforms under a $7 billion IMF programme, which requires measures such as higher taxes, tighter government spending and structural economic changes.
While these reforms have helped stabilise the economy, they have also imposed significant political and economic challenges.
Before this, Pakistan narrowly avoided a sovereign default in 2023 after securing a $3 billion IMF Stand-By Arrangement. It later received the Extended Fund Facility worth $7 billion, along with an additional $1.3 billion package focused on climate resilience and disaster preparedness.
Despite these financial lifelines, Pakistan continues to depend heavily on international assistance, including loans, rollovers and deposits from countries such as China and Saudi Arabia.
What Is an Exchange Stabilisation Support Facility?
Exchange stabilisation facilities are relatively uncommon financial arrangements backed by the US Treasury. They may provide dollar funding, currency swaps or government guarantees aimed at strengthening a country’s foreign exchange reserves and supporting its domestic currency.
These facilities differ from the permanent dollar swap arrangements maintained by the US Federal Reserve with major global central banks.
Pakistan Looks to Deepen Economic Ties With Washington
The request also reflects Islamabad’s broader effort to strengthen economic relations with the United States.
A successful agreement would not only provide financial support but could also signal stronger strategic and economic cooperation between the two countries.
In recent months, Pakistan has explored several areas of collaboration with the US, including:
- Cryptocurrency and digital finance
- Real estate investment
- Mining and natural resources
- Cross-border payment infrastructure
The country has reportedly signed a stablecoin-related agreement with an affiliate of World Liberty Financial, pursued redevelopment plans involving New York’s Roosevelt Hotel, and sought greater US investment in mining projects such as Reko Diq, where the US Export-Import Bank has announced $1.2 billion in financing.
Outlook
Pakistan’s request for a $10 billion US currency support facility highlights its continued efforts to strengthen economic resilience while reducing dependence on multilateral lenders. Although no approval has been announced, the proposal underscores Islamabad’s intention to expand financial cooperation with Washington as it works to stabilise its economy and sustain long-term growth.