Pakistan Seeks USD 10 Billion US Support After Mediator Role in Iran-US Peace Efforts

Pakistan has sought a USD 10 billion Exchange Stabilisation Support Facility from the United States to strengthen its fragile economy, boost foreign exchange reserves and regain independent access to international capital markets, according to media reports. Finance Minister Muhammad Aurangzeb made the request during talks with US Treasury Secretary Scott Bessent in Washington, with the proposed facility reportedly carrying a maturity of up to five years.

According to Pakistan's Dawn newspaper, the proposed assistance would be routed through the US Treasury's Exchange Stabilisation Fund and could include currency swaps, financial guarantees and loans. Pakistan's embassy in Washington confirmed that Aurangzeb sought US support for the country's "road to market" strategy aimed at improving sovereign credit ratings and restoring investor confidence, although it did not disclose the reported USD 10 billion figure. The US Treasury has not publicly commented on the request.

The move comes as Pakistan continues to grapple with mounting external debt obligations and significant financing requirements despite economic stabilisation under the IMF programme. After narrowly avoiding a sovereign default in 2023 through a USD 3 billion IMF bailout, Islamabad is implementing reforms under a USD 7 billion IMF Extended Fund Facility approved in 2024. International ratings agency S&P Global Ratings has since upgraded Pakistan's sovereign rating, citing progress on reforms, while cautioning that external financing risks remain.

The request also coincides with renewed diplomatic engagement between Islamabad and Washington. Some geopolitical analysts believe Pakistan's participation in regional diplomacy, including contacts linked to the recent Iran-US peace initiative, may have helped improve the bilateral atmosphere for broader economic discussions. However, neither the United States nor Pakistan has officially linked the reported USD 10 billion request to those diplomatic efforts, and no decision on the facility has been announced.