Pakistan has gone to the United States with a big ask: a USD 10 billion Exchange Stabilisation Facility, meant to shore up its foreign exchange reserves and take some of the pressure off an economy that’s been struggling for a while now. Reuters reported this, citing a source close to the matter, and said the request came up during talks with US Treasury Secretary Scott Bessent in Washington.
What Pakistan is actually proposing is a Bilateral Exchange Stabilisation Support Facility, with up to five years to pay it back. This came right after Pakistan’s Finance Minister Muhammad Aurangzeb sat down with Bessent on Tuesday, part of a broader push to build stronger economic ties between the two countries.
Why Pakistan wants this
If Washington says yes, the money would go toward boosting Pakistan’s foreign reserves, taking some strain off the rupee, and cutting down on how much the country has to keep borrowing from international lenders.
Reuters also pointed out that this facility, if it happens, would work alongside Pakistan’s ongoing IMF programme, which requires the country to keep pushing through fiscal and monetary reforms. Having stronger reserves could go a long way in building investor confidence and making it easier for Pakistan to handle its financial obligations abroad.
Aurangzeb lays out the struggles
Pakistan’s Finance Ministry said Aurangzeb walked Bessent through where things stand, talking about the country’s efforts toward macroeconomic stability and growth driven by exports.
He didn’t stop there. Aurangzeb also brought up how regional geopolitical tensions have taken a toll on Pakistan’s economy. His message was clear: Pakistan needs more international backing if it wants better access to global capital markets, stronger reserves, and improved credit ratings.
According to the ministry, Pakistan made it clear it wants closer cooperation with the US, both to open up market access and to build investor trust.
Both sides talk about working closer together
Per the Finance Ministry’s statement, Pakistan and the US both said they want to deepen their economic relationship going forward.
Much of the conversation centered on getting more US investment into Pakistan and moving forward on bigger strategic economic projects. It seems both countries are thinking beyond just short-term financial help and looking at building something longer term.
Pakistan’s ongoing IMF commitments
Right now, Pakistan is in the middle of a USD 7 billion IMF programme, and that comes with some tough conditions. Higher taxes, tighter government spending, structural reforms all fall under this.
These reforms are meant to help in the long run. But they’ve clearly put strain on economy and government finances in the meantime.
What exactly is an Exchange Stabilisation Facility?
Reuters explained that these facilities don’t come around often. They’re handled by the US Treasury through its Exchange Stabilization Fund, and the idea is to help a country’s currency and reserves through things like dollar funding, swap deals, or financial guarantees.
This is different from the Federal Reserve’s standing swap lines.
Reuters also noted that before Argentina got a similar deal in 2025, the last time the US gave out a major package like this was to Uruguay back in 2002. Mexico is the exception here, it’s had a swap arrangement with the US running since the 1940s.
Pakistan still leans heavily on outside help
Back in 2023, Pakistan came close to defaulting before a USD 3 billion IMF standby arrangement pulled it back from the edge. After that came a USD 7 billion Extended Fund Facility, plus another USD 1.3 billion loan aimed at helping the country cope better with climate change and natural disasters.
Even with all that support, Reuters reported that Pakistan’s reserves are still heavily dependent on IMF payouts, bilateral aid, and rollovers from partners like China and Saudi Arabia.