Pakistan requests $10bn US support to strengthen forex reserves.

Date:

Pakistan has formally sought a $10 billion Exchange Stabilization Support Facility from the United States in a move aimed at strengthening its foreign exchange reserves, easing pressure on the Pakistani rupee, and enhancing overall economic stability.

Islamabad, Pakistan – Web Desk: During a meeting in Washington, Finance Minister Muhammad Aurangzeb held talks with US Treasury Secretary Scott Bessent on expanding bilateral economic cooperation, boosting US investment, improving Pakistan’s sovereign credit profile, and advancing strategic economic initiatives. The finance minister also highlighted the adverse impact of recent regional tensions on Pakistan’s economy.

According to a Reuters report, Pakistan has requested a five-year bilateral Exchange Stabilization Support Facility worth $10 billion from the United States. If approved, the facility is expected to improve Pakistan’s foreign exchange reserves, reduce pressure on the local currency, and lessen dependence on multilateral financial institutions.

The report noted that this is the first time Pakistan has sought such a bilateral financial arrangement from Washington. Analysts say the proposed facility could provide significant support to Pakistan’s economy amid external financial challenges.

Reuters also reported that Pakistan hopes its diplomatic role in facilitating dialogue during the recent Iran-US crisis could help strengthen economic cooperation with Washington and other international partners. However, Pakistan’s Ministry of Finance has not officially confirmed submitting the request, while the US Treasury Department has declined to comment on the matter.

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