- Pakistan seeks US stabilisation facility with five-year maturity.
- Schehzad says US facility to provide backstop, confidence signal.
- Development comes as Pakistan’s economic outlook improves.
Pakistan is expecting a response from Washington within a couple of months on its request for a $10 billion bilateral stabilisation facility, as the country seeks to capitalise on improved ties with the Trump administration.
The engagement with the US on the 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.”
Pakistan had made a request to the US Treasury Secretary Scott Bessent for a Bilateral Exchange Stabilisation Support Facility with maturity of up to five years, Reuters first reported last month.
Last week, Finance Minister Muhammad Aurangzeb confirmed the development, saying that the proposed arrangement was intended to signal currency and foreign exchange stability rather than serve as a conventional loan or credit line.
He added that the request was currently with the US Treasury Department, and that progress was expected by September — if approved, it could provide a lifeline for the cash-strapped South Asian economy.
The request, which Reuters reported was for $10 billion, follows Pakistan’s role in brokering talks over the US-Iran war, which raised its diplomatic profile and stirred hopes that it could seek economic gains from Washington and other partners.
Prime Minister Shehbaz Sharif and Chief of Defence Forces (CDF) and Chief of the Army Staff Field Marshal Asim Munir have played prominent roles in diplomacy surrounding the Middle East conflict, with Trump describing Pakistan’s top military leader as his “favourite field marshal.”
The development comes as Pakistan’s economic outlook shows signs of improvement. The country has taken a series of steps to stabilise its finances, including securing a $7 billion three-year bailout from the International Monetary Fund and loans from allies.
Earlier this week, Moody’s Ratings upgraded Pakistan’s sovereign credit rating, citing a stronger external position, better fiscal metrics and lower domestic financing costs.
The country also returned to global debt markets this year after a four-year absence, raising funds through a eurobond and issuing its first yuan-denominated notes in China.
