Pakistan's Finance Minister has requested a $10 billion exchange stabilization facility from the U.S. Treasury to bolster the country's economy.
Key facts
- •Finance Minister Muhammad Aurangzeb requested the $10 billion facility from U.S. Treasury Secretary Scott Bessent.
- •The Exchange Stabilisation Support Facility acts as a financial backstop through mechanisms like loans and currency swaps.
- •Pakistan's road-to-market strategy focuses on regaining independent access to international capital markets.
- •The country is currently implementing reforms under a $7 billion IMF program approved in 2024.
- •Pakistan narrowly avoided a default in 2023 with the assistance of a $3 billion IMF loan.
Pakistan's Finance Minister Muhammad Aurangzeb has requested a $10 billion Exchange Stabilisation Support Facility from U.S. Treasury Secretary Scott Bessent. The request aims to strengthen Pakistan's economy through a mechanism that can include currency swaps, financial guarantees, and loans. The Pakistani embassy in Washington confirmed the request, though it did not provide further details.
By the numbers
Economic Strategy and Road-to-Market
The request is part of Pakistan's broader road-to-market strategy, which seeks to improve the country's access to international capital markets, increase foreign exchange reserves, and enhance sovereign credit ratings. This strategy relies on maintaining strict International Monetary Fund (IMF) discipline to manage inflation and fiscal deficits.
Diplomatic Outlook and Economic Context
Diplomatic sources in Washington indicated there are strong chances the request will be approved, noting that the Trump administration has expressed interest in supporting Pakistan's economic recovery. Pakistan remains reliant on foreign assistance and is currently operating under a $7 billion IMF program approved in 2024, following a previous $3 billion loan that helped the country avoid default in 2023.
Timeline
- 2023Pakistan narrowly avoided default after the IMF approved a $3 billion loan program.
- 2024Pakistan began implementing economic reforms under a new $7 billion IMF program.
- July 22, 2026The Dawn newspaper reported confirmation of the $10 billion request from the Pakistani embassy.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by The Hindu.
