Pakistan Pursues $10bn US Reserve Support Facility

Pakistan has requested a USD 10 billion exchange stabilisation facility from the United States to strengthen its foreign exchange reserves and enhance financial stability, according to a source familiar with the matter. If approved, the facility could provide significant support to the country's external financing position.

 

The proposal, submitted to US Treasury Secretary Scott Bessent, seeks a bilateral exchange stabilisation arrangement with a maturity of up to five years. The facility is intended to bolster foreign exchange reserves, ease pressure on the Pakistani rupee, and reduce reliance on multilateral lenders while the country continues implementing reforms under its USD 7 billion IMF programme.

 

Pakistan's request follows its recent diplomatic engagement in facilitating discussions related to the Iran conflict and comes as Islamabad seeks to deepen economic cooperation with Washington. The Finance Ministry has not commented on the proposal, while the US Treasury has declined to respond.

 

A US-backed exchange stabilisation facility would serve as both a liquidity buffer and a confidence-building measure for financial markets. Such arrangements are uncommon and differ from the Federal Reserve's standing dollar swap lines with major central banks.

 

Although Pakistan has strengthened its economy under the IMF programme and secured financial support from friendly countries, its external position remains dependent on official financing and bilateral assistance. The government is also pursuing broader economic cooperation with the United States, including partnerships in mining, digital finance, infrastructure, and investment.