Pakistan has formally asked the United States to establish a $10 billion Exchange Stabilisation Support Facility as Islamabad seeks to strengthen foreign exchange stability and reduce its dependence on short-term bilateral loan rollovers.
Finance Minister Muhammad Aurangzeb confirmed the request on Wednesday, saying discussions with US authorities are continuing and Pakistan expects an update from the US Treasury or US Exim Bank by the end of September.
The proposed facility is intended to provide a foreign exchange backstop and confidence signal, rather than function as a conventional loan or credit line. The government believes such support could strengthen investor confidence, improve perceptions of rupee stability and help Pakistan regain access to international capital markets.
Aurangzeb said Pakistan has already appointed three arrangers as it prepares to raise funds through longer-term market-based instruments. The government is targeting maturities of five, seven and 10 years, while also exploring options to extend the maturity of existing bilateral loans to as long as 10 years.
Pakistan is also engaging with the US Exim Bank and other institutions as part of its broader financing strategy. Aurangzeb said the country remains grateful for support from bilateral partners but is now seeking to shift toward longer-term market financing.
The finance minister said the government is also working with international credit rating agencies to improve Pakistan’s sovereign rating, with B+ identified as a target. A stronger rating would potentially allow Pakistan to access international markets at longer maturities and better financing terms.
Pakistan has already taken steps toward rebuilding its presence in international debt markets through instruments including a Eurobond, Sukuk and a dollar-settled rupee-linked bond.
If approved, the proposed US facility could strengthen Pakistan’s foreign exchange position while helping reduce pressure on the rupee and dependence on repeated bilateral financing rollovers. Reuters previously reported that Pakistan had sought a bilateral facility of up to five years to bolster reserves and ease pressure on the rupee.
Pakistan remains under a $7 billion IMF program, while the government continues to rely on official financing and bilateral support as it works to rebuild foreign exchange buffers and return more sustainably to international capital markets.
