Pakistan says talks with Washington on the proposed facility remain constructive as Islamabad seeks stronger currency stability and improved access to global capital markets.
ISLAMABAD: Pakistan expects to receive a response from the United States within the next couple of months on its request for a proposed $10 billion bilateral exchange stabilisation facility, as Islamabad seeks to strengthen confidence in its currency and improve access to international capital markets.
Adviser to the Finance Minister Khurram Schehzad said discussions with Washington over the proposed facility had been constructive. He said the arrangement could serve as a financial backstop and provide a confidence signal to investors, potentially supporting market access and encouraging private capital.
Pakistan formally sought the facility from US Treasury Secretary Scott Bessent in July. The proposed Bilateral Exchange Stabilisation Support Facility could have a maturity of up to five years.
Finance Minister Muhammad Aurangzeb has clarified that the proposed $10 billion arrangement should not be viewed as a conventional loan or credit line. Instead, he said, its primary purpose would be to strengthen confidence in exchange-rate and foreign exchange stability and support Pakistan’s efforts to return to international capital markets.
Aurangzeb said the request was under consideration by the US Treasury and that Pakistan expected a response by the end of September.
If approved, the facility could strengthen Pakistan’s foreign exchange position, ease pressure on the rupee and reduce reliance on repeated bilateral or multilateral financing arrangements.
The proposed support comes as Pakistan continues efforts to improve its external financial position under an International Monetary Fund programme. The country has been implementing fiscal and monetary measures aimed at restoring macroeconomic stability and strengthening its external position.
Pakistan has also sought to deepen economic engagement with Washington amid improving bilateral ties. Recent diplomatic developments have raised expectations in Islamabad that closer relations could support greater economic cooperation.
Meanwhile, Pakistan’s sovereign credit profile received a boost on Aug. 24 when Moody’s upgraded the country’s rating to B3 from Caa1 and maintained a stable outlook, citing improvements in governance and easing external vulnerability risks.
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