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ISLAMABAD: Pakistan expects a response from Washington within months on its request for a $10 billion stabilisation facility, as Islamabad seeks to deepen economic ties with the Trump administration.
The engagement with the US over the proposed facility has been “constructive”, Adviser to the Finance Minister Khurram Schehzad told Bloomberg on Tuesday.
“The proposed US stabilisation facility would also serve as a potential backstop and confidence signal, supporting market access and helping crowd in private capital,” he said.
Pakistan has requested a Bilateral Exchange Stabilisation Support Facility from US Treasury Secretary Scott Bessent, with a maturity of up to five years, according to a Reuters report last month.
Finance Minister Muhammad Aurangzeb confirmed the request last week, saying the proposed arrangement was intended to provide a signal of currency and foreign exchange stability rather than function as a conventional loan or credit line.
He said the request was currently under consideration by the US Treasury Department and that progress was expected by September. If approved, the facility could provide additional financial support to the cash-strapped South Asian economy.
The $10 billion request comes after Pakistan played a role in facilitating diplomatic efforts over the US-Iran conflict, raising Islamabad’s profile in Washington and fuelling hopes of greater economic cooperation with the US and other international partners.
Prime Minister Shehbaz Sharif and Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir have played prominent roles in Pakistan’s diplomatic engagement over the Middle East conflict. US President Donald Trump has described Field Marshal Munir as his “favourite field marshal”.
The request comes as Pakistan’s economic outlook shows signs of improvement after a period of severe financial pressure.
Islamabad has taken several measures to stabilise its finances, including securing a $7 billion three-year programme from the International Monetary Fund and obtaining financial support from key allies.
Moody’s Ratings upgraded Pakistan’s sovereign credit rating earlier this week, citing improvements in the country’s external position and fiscal metrics, as well as lower domestic financing costs.
Pakistan has also returned to international debt markets this year after a four-year absence, raising funds through a eurobond and issuing its first yuan-denominated notes in China.
The proposed US facility would therefore come at a time when Islamabad is seeking to consolidate recent economic gains, strengthen foreign-exchange buffers and improve investor confidence.
