Pakistan seeks $10 billion US stabilisation facility after Iran diplomacy role

Pakistan has asked the United States for a $10 billion bilateral exchange stabilisation facility, according to a source familiar with the matter. The request is aimed at helping support the rupee, strengthen foreign exchange reserves and improve market access. It comes after Islamabad's role in mediating talks over the Iran war, which has raised expectations of economic backing from Washington and other partners.

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The matter was raised in Washington when Finance Minister Muhammad Aurangzeb met US Treasury Secretary Scott Bessent on Tuesday, according to the reported account. Pakistan's finance ministry said Aurangzeb sought greater US support for the country's path back to the market, including better access to international capital markets, higher reserves and stronger sovereign credit ratings. The ministry also said both sides agreed to deepen economic ties and encourage more US investment.

The proposed facility would be repaid over as long as five years, according to the report. If approved, it would add to Pakistan's reserves and could reduce reliance on loans from institutions such as the International Monetary Fund. Pakistan is already under a $7 billion IMF programme that has required tighter tax and spending measures, making any additional external support politically and economically significant.

The request matters because Pakistan's economy remains exposed to regional conflict and external financing pressure. The finance minister raised concerns about that exposure during his meeting in Washington, underscoring how security developments and economic policy are now closely linked. The reported approach also reflects Islamabad's effort to turn diplomatic relevance into financial support at a time when it is trying to stabilise its currency and restore investor confidence.

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Stabilisation facilities of this kind are uncommon and are usually handled through the US Treasury's Exchange Stabilisation Fund. The report said the last such arrangement was for Argentina in 2025, the first of its kind since Uruguay in 2002, apart from a long-running Mexican swap line dating back to the 1940s. Pakistan previously avoided default in 2023 through a $3 billion IMF deal and later secured the larger $7 billion programme, along with a separate $1.3 billion loan for climate resilience.

Several details remain unclear, including whether Washington will agree to the request and on what terms. The US Treasury declined to comment, and Pakistan's finance ministry did not respond outside business hours, according to the report. What happens next will depend on whether the proposal advances beyond preliminary discussions and whether it can be reconciled with Pakistan's existing IMF commitments.

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