KARACHI (East West News) — Pakistan has formally requested a $10 billion Exchange Stabilization Support Facility from the United States to shore up its foreign exchange reserves, reduce mounting pressure on the Pakistani Rupee, and decrease its reliance on multilateral lending institutions.
According to a report by a British news agency, Islamabad submitted a proposal to US Treasury Secretary Scott Bessent seeking a bilateral arrangement with a maturity period of up to five years. If approved, the facility will act as a crucial financial backstop, helping Pakistan stabilize its currency and manage external debt pressures while continuing structural reforms under its ongoing International Monetary Fund (IMF) program.
Key Highlights:
$10B Request: Islamabad has proposed a 5-year Bilateral Exchange Stabilization Support Facility to the US Treasury.
Diplomatic Context: The request follows Pakistan’s active diplomatic role in facilitating talks and mediating between Washington and Tehran during the US-Iran conflict.
Economic Objectives: The support aims to cushion foreign exchange reserves, relieve pressure on the rupee, and offer flexibility beyond emergency IMF disbursements or bilateral debt rollovers.
Ongoing IMF Reforms: Pakistan is currently implementing strict fiscal discipline, tax hikes, and spending reductions under a $7 billion Extended Fund Facility with the IMF, following its near-default emergency bailout in 2023.
Neither the Ministry of Finance nor the US Department of the Treasury immediately responded for comment at the time of the report.
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