Pakistan has formally requested a $10 billion exchange stabilisation facility from the United States, aiming to strengthen its foreign currency reserves and reduce reliance on multilateral financial support. The bid, recently communicated to US Treasury Secretary Scott Bessent, proposes a bilateral financial arrangement with a maturity period of up to five years, according to a source familiar with the matter.
The request comes amid heightened diplomatic engagement from Pakistan, including its recent involvement in facilitating talks related to the conflict in Iran, which has elevated its international profile. Islamabad hopes this enhanced standing will translate into additional economic support from Washington and other global partners.
If approved, the facility would provide Pakistan with a critical liquidity buffer to support its currency—the rupee—and alleviate pressure on dwindling reserves. The South Asian nation continues to operate under International Monetary Fund (IMF) programs totaling $7 billion, which have imposed fiscal tightening measures such as tax increases and spending cuts. Despite these efforts, Pakistan’s economy remains vulnerable due to limited economic diversification, low foreign investment, and dependence on bilateral support from allies including China and Saudi Arabia.
The exchange stabilisation facility differs from conventional dollar swap lines maintained by the US Federal Reserve with major central banks by serving as a rarer Treasury backstop to stabilize foreign exchange reserves. The most recent comparable arrangement was extended to Argentina in 2025, with similar operations previously granted to Uruguay and Mexico.
Pakistan narrowly avoided default in 2023 via a $3 billion IMF standby agreement, followed by a $7 billion Extended Fund Facility and a separate $1.3 billion loan focused on climate resilience and disaster preparedness. However, its reserves are still susceptible to disruptions, exemplified in April when Pakistan repaid about $3.5 billion to the United Arab Emirates, accounting for roughly one-fifth of its reserves, while Saudi Arabia injected $3 billion in emergency funding.
The country’s central bank projects reserves could approach $20 billion by the end of 2026, nearing levels seen in 2021. Analysts note that a US-backed exchange stabilisation facility would not only function as a liquidity safeguard but also serve as a political endorsement, potentially easing Pakistan’s dependence on IMF disbursements and episodic bailouts.
Global credit rating agency Fitch has acknowledged Pakistan’s compliance with IMF conditions as supportive of the nation’s financing capacity, while also cautioning that rising global energy prices and supply challenges could significantly drain foreign currency reserves. Pakistan’s investment climate remains constrained by ongoing external shocks, policy uncertainty, security concerns, profit repatriation restrictions, and a narrow export base. These factors contribute to Pakistan’s speculative-grade credit ratings, which limit its access to affordable borrowing.
In parallel with these financial engagements, Pakistan has sought closer economic cooperation with US entities linked to former President Donald Trump’s family, including signing a stablecoin agreement for cross-border payments with an affiliate of World Liberty Financial, the Trump family’s primary cryptocurrency business. The country has also pursued redevelopment plans for the Roosevelt Hotel in New York, previously controlled by the Defense Intelligence Agency, as well as US-backed mining investments in the Reko Diq area of Balochistan, with the US Export-Import Bank committing $1.2 billion in financing for related projects.