Pakistan asks US for $10 billion exchange stabilization facility after Iran war diplomacy
Pakistan has requested a $10 billion exchange stabilization facility from the US to ease economic pressures. This move aims to bolster reserves amid ongoing IMF program challenges.
- 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.
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.
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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.
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