Pakistan Seeks $10 Billion US Backstop – Report
Pakistan has requested a $10 billion exchange stabilisation facility from the United States to strengthen its foreign exchange reserves and reduce pressure on the Pakistani rupee. The proposed arrangement has not yet received US approval.
Pakistan Seeks US Financial Backstop
Islamabad has proposed a Bilateral Exchange Stabilisation Support Facility with a maturity of up to five years. If approved, the mechanism could provide dollars, guarantees or currency-swap support to improve liquidity and limit volatility in Pakistan’s foreign exchange market.
Exchange stabilisation facilities are separate from the permanent dollar-swap arrangements maintained by the US Federal Reserve with selected central banks. Such assistance is rarely extended to foreign governments and is generally intended to address financial instability.
The US Treasury has not publicly commented on Pakistan’s reported request.
Pakistan Foreign Reserves Under Pressure
Pakistan Finance Minister Muhammad Aurangzeb met US Treasury Secretary Scott Bessent in Washington and raised concerns about the country’s exposure to regional geopolitical developments. An official account of the meeting referred to Pakistan’s need for better access to international capital markets, stronger reserves and improved sovereign credit ratings, but did not disclose the $10 billion proposal.
Pakistan continues to rely on official financing, loan rollovers and deposits from partners including China and Saudi Arabia. Its central bank has projected that official reserves could reach approximately $20 billion by the end of 2026.
Pakistan IMF Programme Continues
The proposed US facility would supplement rather than automatically replace Pakistan’s existing financial arrangements. Islamabad remains under a $7 billion International Monetary Fund programme requiring tighter fiscal policy, tax measures and economic reforms.
Pakistan narrowly avoided default in 2023 with a $3 billion IMF standby arrangement. It later secured the larger extended programme and a separate $1.3 billion facility supporting climate resilience.
Approval of the US proposal could ease short-term currency and reserve pressures, but its terms and implementation would depend on negotiations between both governments.
