- August 27, 2026
- Posted by: Tresmark
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Pakistan expects a response from Washington within the next few months regarding its request for a $10 billion bilateral exchange stabilisation facility, as Islamabad seeks to strengthen economic ties with the United States.
Finance Minister’s Adviser Khurram Schehzad said discussions with US officials had been “constructive”, adding that the proposed facility could act as a financial backstop, strengthen market confidence and help attract private investment.
Finance Minister Muhammad Aurangzeb has clarified that the proposed arrangement would not be a conventional loan or credit line. Instead, it is intended to provide a confidence signal for currency and exchange-rate stability, potentially helping Pakistan access international debt markets.
Islamabad has requested a facility with a maturity of up to five years. If approved, the arrangement could support Pakistan’s foreign exchange reserves, reduce pressure on the rupee and lower dependence on multilateral financing.
The proposal comes as Pakistan continues implementing reforms under its $7 billion IMF programme, including fiscal tightening, tax reforms and spending controls aimed at improving the country’s external position.
Pakistan’s recent diplomatic role in regional mediation has also contributed to closer engagement with Washington, raising expectations in Islamabad for greater economic cooperation.
Meanwhile, Moody’s recently upgraded Pakistan’s sovereign rating to B3 from Caa1, citing improvements in governance and external risks, although it continued to flag weaknesses in rule of law, corruption control and government effectiveness.
