Pakistan has formally requested a $10 billion foreign exchange stabilization facility from the United States to strengthen its economy, boost foreign exchange reserves, and improve long-term financial stability.
According to reports, the government has submitted a proposal to US Treasury Secretary Scott Bessent seeking a five-year bilateral Exchange Stabilization Support Facility. If approved, the funding would help stabilize Pakistan’s foreign exchange reserves, ease pressure on the Pakistani rupee, and reduce reliance on emergency financial assistance from international lenders.
The proposed facility comes as Pakistan continues implementing economic reforms under the International Monetary Fund’s (IMF) $7 billion Extended Fund Facility (EFF). These reforms focus on increasing tax revenues, improving fiscal discipline, reducing public spending, and strengthening the country’s economic framework.
Officials believe the US-backed stabilization fund would enhance investor confidence, improve currency stability, and provide greater flexibility in managing external debt obligations. It could also reduce Pakistan’s dependence on repeated emergency borrowing while supporting sustainable economic growth.
The request follows Pakistan’s ongoing diplomatic engagement with the United States and comes after the country successfully avoided sovereign default in 2023 through IMF financial assistance. If approved, the facility would represent a significant step toward strengthening Pakistan’s external financial position and long-term economic resilience.
