Pakistan Asks US for $10 Billion Exchange Stabilization Facility After Iran War Diplomacy
- Pakistani Finance Minister Muhammad Aurangzeb delivered the formal request in a letter to US Treasury Secretary Scott Bessent on Tuesday
- The $10 billion facility would have a maturity of up to five years and is aimed at shoring up Pakistan's foreign exchange reserves
- The request comes as Pakistan seeks to leverage its role in brokering Iran war talks into concrete economic gains from Washington
Pakistan has formally asked the United States for a $10 billion bilateral exchange stabilisation facility, a move that could offer significant financial relief to the country's fragile economy, according to two sources familiar with the matter.
Finance Minister Muhammad Aurangzeb made the request in a letter delivered during a meeting with US Treasury Secretary Scott Bessent on Tuesday.
Source: Getty Images
The letter asked for the creation of a Bilateral Exchange Stabilization Support Facility between the two governments, worth $10 billion with a repayment period of up to five years.
The US Treasury declined to comment, while Pakistan's finance ministry had not responded to Reuters before the story was published.
What the facility would mean for Pakistan
If Washington agrees, the arrangement would strengthen Pakistan's foreign currency reserves, ease pressure on the rupee, and reduce how heavily the country relies on multilateral lenders.
According to Reuters, Pakistan is currently under a $7 billion International Monetary Fund programme that has required politically costly tax hikes and spending cuts.
Exchange stabilisation facilities are uncommon instruments routed through the US Exchange Stabilization Fund. They differ from the Federal Reserve's standing dollar swap lines and are designed to stabilise currencies and shore up reserves.
The last time Washington extended such a facility to a foreign government was Argentina in 2025, before which Uruguay received one in 2002.
Pakistan's public finances remain under considerable strain. The country came close to default in 2023 before securing a $3 billion IMF standby arrangement, and later locked in a $7 billion Extended Fund Facility. Its reserves still lean heavily on financing from China, Saudi Arabia, and official rollovers.
That exposure became clear in April when Pakistan repaid roughly $3.5 billion to the United Arab Emirates, equal to about one fifth of its reserves, with Saudi Arabia stepping in with $3 billion in fresh support.
Pakistan's push to deepen US ties
The request reflects Islamabad's broader effort to use its improved standing with Washington to address long-running economic vulnerabilities. Pakistan played a role in brokering talks around the Iran war, which raised its diplomatic profile and opened the door to seeking economic concessions.
Aurangzeb's ministry said he raised concerns about Pakistan's economic exposure to regional instability during the Bessent meeting, and pushed for greater US support including better access to international capital markets, higher reserves, and improved sovereign credit ratings.
Beyond this request, economic engagement between the two countries has expanded into areas including crypto, real estate, and mining. Pakistan signed a stablecoin agreement for cross-border payments with an affiliate of World Liberty Financial, the main crypto venture linked to President Donald Trump's family.
It has also pursued a memorandum of understanding to redevelop the Roosevelt Hotel in New York, and attracted a $1.25 billion financing commitment from the US Export-Import Bank for the Reko Diq mining project.
Ratings agency Fitch noted in April that Pakistan's compliance with its IMF programme has supported its funding capacity, though it warned that rising energy costs and potential supply disruptions could still erode the country's reserves.
Source: Getty Images
Deadly clashes in Pakistan leave 9 dead
Legit.ng earlier reported that at least nine people were killed on Tuesday, July 14, 2026, in Pakistan-administered Kashmir as tensions escalated during a planned protest march towards the regional capital, Muzaffarabad.
Security forces raided a house on the outskirts of Rawalakot town in Poonch district after receiving intelligence about a weapons cache.
Source: Legit.ng
