Pakistan seeks $10bn US lifeline to shore up economy

Dubai: Pakistan has asked the United States for a $10 billion Exchange Stabilisation Support Facility, a rare form of financial support that could significantly strengthen the country’s external finances if approved.

Finance Minister of Pakistan Muhammad Aurangzeb presented the request during talks with US Treasury Secretary Scott Bessent in Washington on Tuesday. While Pakistan’s embassy confirmed the meeting, it did not disclose details of the proposed facility, and the US Treasury declined to comment.

According to Reuters, Islamabad is seeking a bilateral support mechanism with a maturity of up to five years that would provide access to US dollar financing through the US Treasury’s Exchange Stabilisation Fund.

The facility would help Pakistan increase its foreign exchange reserves, stabilise the rupee, reduce pressure on external debt repayments and improve investor confidence. It would also lessen the country’s dependence on multilateral lenders such as the International Monetary Fund (IMF).

Credit ratings

In an official statement, Pakistan’s Finance Ministry said Aurangzeb sought greater US support to improve the country’s access to international capital markets, strengthen foreign exchange reserves and enhance sovereign credit ratings. However, the statement did not specifically mention the $10 billion request.

Pakistan is currently implementing economic reforms under a $7 billion IMF programme, following a severe balance-of-payments crisis that brought the country close to default in 2023. Although the reforms have helped stabilise the economy, the country continues to rely heavily on external financing from multilateral institutions and friendly nations, including China and Saudi Arabia.

An exchange stabilisation facility would provide an additional financial cushion, helping Pakistan manage currency volatility and external financing pressures while improving market confidence.

Economic ties

The request comes as Pakistan seeks to deepen economic ties with Washington. Recent cooperation has expanded beyond traditional diplomacy to include investment discussions in mining, real estate and digital finance. US-backed financing has also been announced for the Reko Diq copper and gold project, while both countries continue to explore broader economic partnerships.

Analysts say that if approved, the proposed facility would represent one of the largest bilateral financial support arrangements ever extended by the United States to Pakistan and could send a strong signal of confidence to international investors.

A $10 billion facility would increase the State Bank’s reserves, strengthen confidence in the rupee, reduce borrowing costs, improve Pakistan’s credit profile and provide reassurance to foreign investors.

Why is this significant?

Such facilities are rare. The US Treasury has approved very few exchange stabilisation arrangements in recent decades. Reuters noted that Argentina received one in 2025, while Uruguay was the previous recipient in 2002.

If Washington agrees to Pakistan’s request, it would signal a major strengthening of US-Pakistan economic relations and indicate greater US confidence in

What does this mean?

This is not a grant or aid package. Pakistan is asking the US for a financial safety net.

What is an Exchange Stabilisation Support Facility?

It is a mechanism through which the US Treasury can provide Dollar loans or credit lines and currency swap arrangements.

Financial guarantees

The aim is to help a country maintain adequate foreign exchange reserves and prevent instability in its currency.

Why does Pakistan want it?

Pakistan still faces several economic challenges:

• Foreign exchange reserves remain relatively low.

• Large external debt repayments are due over the coming years.

• The rupee remains vulnerable to external shocks.

• The country is dependent on IMF loans and support from friendly countries.