ISLAMABAD — Pakistan is anticipating a response from the United States within the next couple of months regarding its request for a $10 billion bilateral stabilisation facility, as Islamabad looks to build on strengthening relations with the Trump administration.
Adviser to the Finance Minister Khurram Schehzad described the ongoing discussions with Washington over the facility as “constructive” in comments made to Bloomberg on Tuesday. He noted that the proposed arrangement would function as a potential backstop and a signal of confidence, helping support market access and encouraging private capital inflows.
Details of the Stabilisation Facility Request
Pakistan formally approached US Treasury Secretary Scott Bessent seeking a Bilateral Exchange Stabilisation Support Facility with a maturity period extending up to five years, according to a Reuters report published last month.
Finance Minister Muhammad Aurangzeb confirmed the development last week, clarifying that the arrangement was designed primarily to reinforce currency and foreign exchange stability rather than function as a standard loan or credit facility. He said the request remains under review by the US Treasury Department, with progress anticipated by September. Should the facility be approved, it could offer meaningful relief to Pakistan’s financially strained economy.
Reuters reported the request amounts to $10 billion, and it comes on the heels of Pakistan’s involvement in mediating discussions during the US-Iran conflict, an effort that elevated the country’s diplomatic standing and fuelled expectations of potential economic dividends from Washington and other international partners.
Diplomatic Ties Strengthen Economic Prospects
Prime Minister Shehbaz Sharif and Chief of Defence Forces and Chief of the Army Staff Field Marshal Asim Munir have both taken visible roles in diplomatic efforts tied to the Middle East crisis, with President Trump referring to Pakistan’s senior military leader as his “favourite field marshal.”
This latest development coincides with broader signs of improvement in Pakistan’s economic trajectory. The country has implemented a series of financial stabilisation measures, including a $7 billion, three-year bailout package secured from the International Monetary Fund, along with additional loans from allied nations.
Earlier this week, Moody’s Ratings raised Pakistan’s sovereign credit rating, pointing to a stronger external account position, improved fiscal indicators and reduced costs of domestic borrowing as key drivers behind the upgrade.
Pakistan has also re-entered international debt markets this year following a four-year gap, successfully raising capital through a eurobond issuance and marking its first-ever yuan-denominated bond offering in China.