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Islamabad: Pakistan has sought a USD 10 billion Exchange Stabilisation Support Facility from the United States following its mediation role during the US-Israeli war on Iran, Reuters reported, citing a source briefed on the matter. If approved, the proposed facility could help strengthen Pakistan’s external finances by reinforcing foreign exchange reserves and supporting economic stability.

Finance Minister Mohammad Aurangzeb presented the proposal to US Treasury Secretary Scott Bessent during talks in Washington. The proposed bilateral facility would have a maturity of up to five years.

Finance ministry statement

Following the meeting, Pakistan’s finance ministry said Aurangzeb highlighted the country’s economic vulnerability to regional geopolitical developments. It said he sought greater US support to improve access to international capital markets, build foreign exchange reserves and strengthen Pakistan’s sovereign credit ratings.

The ministry added that both sides reaffirmed their commitment to expanding bilateral economic cooperation, encouraging US investment and advancing strategic projects. However, it made no reference to the reported stabilisation facility request.

Proposed financial support

The proposal comes as Pakistan remains reliant on economic reforms under the International Monetary Fund (IMF) programme while working to strengthen its fragile financial position.

The Exchange Stabilisation Support Facility would be backed by the US Treasury’s Exchange Stabilization Fund, which can provide loans, currency swaps and financial guarantees to help countries maintain currency stability and strengthen foreign exchange reserves. Such arrangements are uncommon and separate from the US Federal Reserve’s standing dollar swap lines with major central banks. Argentina received the most recent facility in 2025.

Economic outlook

Pakistan is implementing a USD 7 billion IMF programme after narrowly avoiding default in 2023. The State Bank of Pakistan expects foreign exchange reserves to approach USD 20 billion by the end of 2026.

Ratings agency Fitch has said continued implementation of IMF-backed reforms has improved Pakistan’s funding capacity, while warning that higher energy costs and prolonged instability in the Middle East could place renewed pressure on the country’s external finances.

Iran war background

The US-Israeli war on Iran began on February 28 with coordinated strikes targeting Iran’s nuclear programme, triggering a wider regional conflict. During the conflict, Pakistan hosted talks in Islamabad between US and Iranian officials as part of mediation efforts to ease tensions. Reuters said the diplomatic engagement raised expectations of stronger economic cooperation between Islamabad and Washington.