Pakistan has asked the United States for a $10 billion exchange stabilisation facility to strengthen its foreign exchange reserves and support the Pakistani rupee, according to a source familiar with the matter.
The request, reported for the first time, follows Pakistan's diplomatic role in facilitating talks during the Iran conflict, which raised expectations that Islamabad could pursue stronger economic cooperation with Washington.
According to the source, Pakistan submitted the proposal to US Treasury Secretary Scott Bessent, seeking a bilateral exchange stabilisation support facility worth $10 billion with a maturity of up to five years.
If approved, the facility would help increase Pakistan's foreign exchange reserves, ease pressure on the rupee and reduce the country's dependence on multilateral lenders while it continues implementing fiscal and monetary reforms under its International Monetary Fund (IMF) programme.
The US Treasury declined to comment on the reported request. Pakistan's Ministry of Finance also did not immediately respond to requests for comment.
Finance Minister Muhammad Aurangzeb met Scott Bessent in Washington on Tuesday. According to a ministry statement, Aurangzeb highlighted Pakistan's economic vulnerability to regional geopolitical developments and called for greater US support.
"Senator Aurangzeb sought greater US support for Pakistan's road to market, underpinned by improved access to international capital markets, higher foreign exchange reserves, and enhanced sovereign credit ratings," the statement said. It added that both sides reaffirmed their commitment to strengthening bilateral economic cooperation, encouraging greater US investment and advancing strategic projects.
Pakistan remains under a $7 billion IMF Extended Fund Facility, which has required politically sensitive reforms, including higher taxes, tighter public spending and broader structural changes.
Exchange stabilisation facilities are uncommon financial arrangements provided by the US Treasury through its Exchange Stabilisation Fund. They offer dollar funding, currency swaps or guarantees to help countries stabilise their reserves and currencies during periods of financial stress. They differ from the permanent US Federal Reserve dollar swap lines available to a limited number of major central banks.
The most recent new foreign-government exchange stabilisation facility was extended to Argentina in 2025, following a similar arrangement for Uruguay in 2002. Mexico also maintains a long-standing swap line with the United States, dating back to the 1940s and currently valued at $9 billion.
Pakistan narrowly avoided sovereign default in 2023 after securing a $3 billion IMF standby arrangement. It later obtained the current $7 billion IMF programme, alongside a separate $1.3 billion package aimed at improving resilience to climate change and natural disasters.
Despite those agreements, Pakistan's foreign exchange reserves remain heavily dependent on official financing, debt rollovers and financial support from China and Saudi Arabia. That dependence was highlighted in April when the country repaid about $3.5 billion to the United Arab Emirates, equivalent to roughly one-fifth of its reserves, while Saudi Arabia provided $3 billion in fresh financial assistance.
Pakistan's central bank said in January that reserves could recover to around $20 billion by the end of 2026, close to their 2021 record.
Analysts say a US-backed exchange stabilisation facility would not only strengthen liquidity but also send a positive signal to financial markets, helping stabilise the rupee and reducing reliance on IMF disbursements and emergency bilateral support.
Credit rating agency Fitch said in April that Pakistan's continued adherence to its IMF programme had improved its funding capacity, while stronger foreign exchange buffers provided protection against economic shocks linked to tensions in the Middle East. However, the agency warned that higher energy costs and potential supply disruptions could still place significant pressure on the country's reserves.
Pakistan continues to face structural economic challenges, including weak foreign investment, policy uncertainty, security concerns, a narrow export base and a speculative-grade sovereign credit rating that keeps borrowing costs elevated.
At the same time, Islamabad has sought to deepen economic ties with the administration of US President Donald Trump. Cooperation has expanded into sectors including cryptocurrency, real estate and mining.
Pakistan has signed a stablecoin agreement for cross-border payments with an affiliate of World Liberty Financial, the Trump family's main cryptocurrency business. It is also pursuing a memorandum of understanding with the US government to redevelop the Pakistan International Airlines-owned Roosevelt Hotel in New York and has encouraged US investment in the Reko Diq mining project, where the US Export-Import Bank has announced $1.25 billion in financing.
