Pakistan seeks $10 billion U.S. exchange-rate support fund for up to five years

The proposed facility would aim to bolster foreign-exchange reserves, support the rupee and reduce reliance on multilateral and emergency funding as Pakistan navigates IMF reforms and fragile external liquidity.

TRUMP

36d ago

Fact Check

The Reuters exclusive directly confirms every key element of the claim: Pakistan requested a $10 billion exchange stabilization support facility from the U.S. Treasury with a maturity of up to five years, intended to bolster reserves, support the rupee, and reduce reliance on IMF/emergency funding. Anadolu Agency independently corroborates the $10 billion figure and the exchange stabilization purpose, citing embassy officials and Dawn. Both note the U.S. Treasury declined to comment and that the finance ministry's official statement did not reference the figure, so the request is sourced rather than officially confirmed by Pakistan's government — hence not a near-certain 1.0. Nonetheless, the consistent multi-source reporting strongly supports the claim.

Summary

Pakistan has asked the United States for a $10 billion Bilateral Exchange Stabilization Support Facility with a maturity of up to five years, a move that could strengthen foreign-exchange reserves, ease pressure on the rupee and reduce dependence on multilateral financing while the country remains under an IMF program. The request, made to U.S. Treasury Secretary Scott Bessent and reported by Reuters citing a source briefed on the matter, comes after Pakistan’s diplomacy around the Iran war raised hopes in Islamabad of broader economic support from Washington. Pakistani Finance Minister Muhammad Aurangzeb met Bessent in Washington and raised the economy’s vulnerability to regional geopolitical developments, while the finance ministry said he sought greater U.S. support for Pakistan’s “road to market,” including improved access to international capital markets, higher foreign-exchange reserves and stronger sovereign credit ratings. The ministry statement did not mention the reported request, and the U.S. Treasury declined to comment. Pakistan narrowly avoided default in 2023 with a $3 billion IMF standby arrangement and later secured a $7 billion Extended Fund Facility, alongside a separate $1.3 billion loan focused on climate change and natural-disaster resilience. Even so, its reserve position still relies heavily on official financing, rollovers and deposits from China and Saudi Arabia. That vulnerability was underscored in April, when Pakistan repaid about $3.5 billion to the United Arab Emirates, roughly one-fifth of its reserves, with Saudi Arabia providing $3 billion in fresh support. Exchange stabilization facilities are unusual U.S. Treasury backstops, typically linked to the Exchange Stabilization Fund, that can provide dollars, swaps or guarantees to support reserves and steady currencies. They differ from the Federal Reserve’s standing dollar swap lines with major central banks. Reuters said a 2025 Argentina package was the first new foreign-government exchange stabilization facility since Uruguay in 2002, apart from Mexico’s long-standing $9 billion swap line. Pakistan has also sought to deepen economic ties with Washington through projects spanning crypto, real estate and mining, including a stablecoin agreement for cross-border payments with an affiliate of World Liberty Financial, the main crypto business of President Donald Trump's family.

Terms & Concepts

Exchange Stabilization Fund: A U.S. Treasury mechanism used to help manage currency and financial-stability operations, including support facilities for foreign governments.
stablecoin: A digital token designed to hold a steady value, often by being pegged to a fiat currency such as the U.S. dollar.
foreign-exchange reserves: Official holdings of foreign currencies and related assets that countries use to meet external obligations and support their currency.