The request follows Pakistan's recent diplomatic engagement in facilitating talks related to the US-Iran conflict, which has raised Islamabad's profile at global stage
WASHINGTON: (UrduPoint/Pakistan Point News-July 22nd, 2026) Pakistan has formally requested a $10 billion exchange stabilisation facility from the United States in a move aimed at strengthening its foreign exchange reserves, stabilising the rupee and reducing dependence on multilateral lenders, according to officials familiar with the matter.
The request follows Pakistan's recent diplomatic engagement in facilitating talks related to the US-Iran conflict, which has raised Islamabad's international profile and opened the door for broader economic cooperation with Washington.
According to officials, Islamabad has proposed a Bilateral Exchange Stabilisation Support Facility worth $10 billion with a repayment period of up to five years. If approved, the arrangement would provide Pakistan with additional financial support to bolster its external reserves while complementing the country's ongoing economic reforms under the International Monetary Fund (IMF) programme.
The proposed facility is designed to help ease pressure on the Pakistani rupee and improve financial stability by reducing reliance on periodic external financing.
During his visit to Washington on Tuesday, Finance Minister Muhammad Aurangzeb met US Treasury Secretary Scott Bessent and discussed Pakistan's economic outlook and the impact of regional geopolitical developments on the country's economy.
According to a statement issued by Pakistan's Finance Ministry, Aurangzeb sought stronger US support to improve Pakistan's access to international capital markets, increase foreign exchange reserves and strengthen the country's sovereign credit profile. The statement added that both sides reaffirmed their commitment to expanding bilateral economic cooperation, encouraging greater US investment and advancing strategic development projects.
Pakistan is currently implementing economic reforms under a $7 billion IMF Extended Fund Facility, which requires fiscal discipline, higher tax revenues and structural reforms.
Exchange stabilisation facilities are rare financial arrangements provided by the US Treasury to support foreign currencies and strengthen central bank reserves. Such facilities are intended to enhance financial stability during periods of economic stress.
Pakistan narrowly avoided a sovereign default in 2023 after securing an IMF standby programme and later obtained the current Extended Fund Facility, along with a separate $1.3 billion climate resilience loan. Despite improvements in economic indicators, the country's foreign exchange reserves continue to depend heavily on external financing and support from friendly countries.
The State Bank of Pakistan has projected that foreign exchange reserves could rise to around $20 billion by the end of 2026 if current economic reforms remain on track.
A successful agreement with the United States would provide Pakistan with an important financial cushion while signalling stronger bilateral economic ties. It could also reduce pressure on the rupee, improve investor confidence and lessen the country's dependence on IMF disbursements and emergency financial assistance.
In recent months, Pakistan and the United States have expanded cooperation in areas including digital finance, real estate development and mining, reflecting growing efforts to deepen economic relations between the two countries.
