Key facts
- Pakistan has requested a $10 billion US exchange stabilization facility.
- The facility aims to boost Pakistan's foreign reserves and support its currency.
- U.S. Treasury Secretary Scott Bessent met with Pakistan's finance minister, Muhammad Aurangzeb.
- Bessent welcomed Pakistan's economic reforms and efforts to return to international capital markets.
- The U.S. Treasury statement did not directly address the stabilization facility request.
Pakistan has formally requested a $10 billion Bilateral Exchange Stabilization Support Facility from the U.S. Treasury to bolster its foreign reserves and stabilize its currency. The request, made by Finance Minister Muhammad Aurangzeb to Treasury Secretary Scott Bessent, comes as Pakistan seeks to reduce its dependence on multilateral financing and ad hoc bilateral support. Bessent welcomed Pakistan's progress in implementing economic reforms and laying the groundwork for a return to international capital markets, according to a Treasury statement. The statement did not directly address the specific facility request. Pakistan narrowly avoided default in 2023 with a $3 billion IMF standby deal and later secured a $7 billion Extended Fund Facility, but its reserves remain reliant on official financing and deposits from countries like China and Saudi Arabia. Exchange stabilization facilities are rare U.S. Treasury backstops used to provide dollars and support financial stability.