Aurangzeb Seeks $10 Billion Support Facility from US

Pakistan's Finance Minister Muhammad Aurangzeb has formally requested a $10 billion Exchange Stabilisation Support Facility from US Treasury Secretary Scott Bessent during a visit to Washington. The request, confirmed by officials at Pakistan's embassy, aims to strengthen the South Asian nation's economy.

The proposed facility would function as a bilateral stabilization mechanism. Under this arrangement, the US government, via its Treasury's Exchange Stabilisation Fund, would provide loans or other backstop facilities to Pakistan. The primary goals are to bolster the country's foreign exchange reserves, alleviate debt pressures, and ultimately stabilize its economy. Such facilities are typically employed to prevent currency instability and support a partner country's currency through market interventions.

While officials at the Pakistan embassy and the US Treasury declined to provide specific details, an embassy readout mentioned Aurangzeb sought US support for Pakistan's "road-to-market" strategy, focusing on improved access to international capital markets, increased foreign exchange reserves, and enhanced sovereign credit ratings. The $10 billion request itself was not mentioned in the official statement.

However, diplomatic sources in Washington indicated that there are "strong chances" the stabilization request will be approved. These sources pointed to the Trump administration's "keen interest" in maintaining engagement with Pakistan and its past pledges to assist in strengthening the country's economy.

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The Trump administration “has a keen interest in remaining engaged” with Pakistan and has “more than once pledged” to help strengthen the country’s economy.