Pakistan Seeks $10 Billion US Exchange Stabilization Facility
3 days ago
At a glance
- Pakistan has requested a $10 billion Exchange Stabilization Support Facility from the US.
- The facility aims to bolster foreign exchange reserves and stabilize the economy.
- The request was made by Finance Minister Muhammad Aurangzeb to US Treasury Secretary Scott Bessent.
Story so far
US Treasury Secretary Scott Bessent welcomed Pakistan’s progress in economic reforms, emphasizing the importance of continued efforts for self-reliance and growth. Pakistan's Finance Minister Muhammad Aurangzeb met Secretary Bessent in Washington D.C., where he specifically requested a $10 billion "backstop facility" from the United States, seeking a five-year financial arrangement to alleviate pressure on the Pakistani rupee and bolster foreign exchange reserves. Minister Aurangzeb briefed Secretary Bessent on Pakistan's economic stability, ongoing reforms, and export-oriented growth strategy, also highlighting the negative impacts of the current regional situation on the economy and seeking US support for better access to international capital markets. Both sides reaffirmed their commitment to deepening bilateral economic cooperation. The Finance Minister has now reportedly formally asked for this $10 billion Exchange Stabilization Support Facility, detailing its mechanism to bolster reserves and ease debt pressures.
Latest development
Finance Minister Muhammad Aurangzeb has reportedly formally requested a $10 billion Exchange Stabilization Support Facility from US Treasury Secretary Scott Bessent. This facility, proposed with a five-year maturity, is intended to provide loans or other backstop mechanisms to strengthen Pakistan's foreign exchange reserves and stabilize its economy.
Latest updates
Finance Minister Muhammad Aurangzeb has reportedly asked US Treasury Secretary Scott Bessent for a $10 billion Exchange Stabilization Support Facility. This proposed facility, with a maturity of up to five years, would function as a financial mechanism through which the US government, via the Treasury’s Exchange Stabilization Fund, would provide loans or other backstop facilities to Pakistan. The aim is to bolster the country's foreign exchange reserves, ease debt pressures, and help stabilize the economy. This request comes at a time of regional instability, particularly the Iran-US conflict, which has impacted global energy markets and increased Pakistan’s import bill, adding strain to the economy.
Pakistan's Finance Minister Muhammad Aurangzeb held a key meeting with the U.S. EXIM Bank Chief.
US Treasury Secretary Scott Bessent welcomed Pakistan’s progress in implementing economic reforms and laying the groundwork for a return to international capital markets. In a statement on Wednesday, the Treasury emphasized the importance of Pakistan continuing its reforms to become more economically self-reliant, boost growth, and strengthen economic resilience. However, the statement did not address Pakistan’s request for a $10 billion exchange stabilisation facility.
Pakistan has specifically requested a $10 billion "backstop facility" from the United States to alleviate pressure on the Pakistani rupee and bolster its foreign exchange reserves.
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