Pakistan has formally requested a $10 billion financial facility from the United States to bolster its foreign exchange reserves amid mounting economic challenges. The request was made by Pakistan’s Finance Minister Muhammad Aurangzeb during a meeting with US Treasury Secretary Scott Bessent in Washington on Tuesday. According to officials familiar with the discussions, the proposed facility would have a maturity of up to five years and aim to provide dollar liquidity through the US Treasury’s Exchange Stabilisation Fund (ESF).
This move comes as Pakistan, a country of approximately 250 million people, seeks to leverage its recent role in mediating between the United States and Iran. Pakistan, alongside Qatar, played a key role in negotiating a ceasefire memorandum aimed at easing tensions between Washington and Tehran. Field Marshal Asim Munir, Pakistan’s most influential military figure, has also fostered a close personal relationship with former US President Donald Trump, reportedly described by Trump as his “favourite field marshal.”
The $10 billion request, if approved, would significantly exceed the $7 billion package Pakistan is currently receiving from the International Monetary Fund (IMF) under an economic reform program designed to stabilize the country after a balance-of-payments crisis in 2023. Pakistan’s foreign exchange reserves currently stand at around $18 billion, sufficient to cover roughly three months of imports. However, increasing costs—exacerbated by disruptions in global oil supplies due to the ongoing conflict involving the US, Israel, and Iran—have put additional pressure on reserves. Prime Minister Shehbaz Sharif reported in April that Pakistan’s weekly oil import bill had more than doubled to $800 million from $300 million prior to the escalation of hostilities.
The proposed facility would enable Pakistan to access US dollar financing to stabilise the rupee, ease pressure on debt repayments, and improve investor confidence. It aims to provide a financial safety net rather than an aid package. Access to the US Treasury’s Exchange Stabilisation Fund has been rare in previous decades but has recently seen increased use as a tool to assist foreign allies facing dollar liquidity shortages and market volatility. Similar arrangements have been granted to countries like Argentina in 2025 and Uruguay in 2002. The US Treasury has indicated a willingness to support allied nations through swaps, guarantees, or direct dollar financing in response to global economic disruptions, including those tied to the Iran conflict. Earlier this year, the Treasury also noted requests for swap lines from the United Arab Emirates and other Gulf and Asian partners to address economic fallout from the ongoing war.
Following the meeting, Pakistan’s Finance Ministry issued a statement expressing a desire for enhanced US cooperation to improve foreign exchange reserves, increase market access based on sovereign credit ratings, and support Pakistan’s return to international capital markets. The US Treasury, in turn, commended Pakistan’s commitment to economic self-reliance and creating conditions conducive to market confidence.
Pakistan currently depends heavily on annual debt rollovers from China and Saudi Arabia to maintain its foreign reserves and uphold its commitments under the IMF program. Approval of the requested facility could provide a significant boost to Pakistan’s external finances and signal stronger economic ties with Washington, which have recently expanded beyond diplomacy to include investment in sectors such as mining, real estate, and digital finance. The US has already backed financing for major projects like the Reko Diq copper and gold mine, reflecting a growing bilateral economic partnership.