Pakistan has asked the US for a $10 billion exchange stabilisation facility that, if approved, could provide a major financial lifeline for the cash-strapped South Asian economy, according to a source familiar with the matter.
The request, reported for the first time, comes after Pakistan's role in brokering talks over the Iran war boosted its diplomatic profile and fuelled expectations that it could seek economic support from Washington and other partners.
In a request to US Treasury Secretary Scott Bessent, Islamabad sought a $10 billion Bilateral Exchange Stabilisation Support Facility with a maturity of up to five years.
If approved, the facility would strengthen Pakistan's foreign exchange reserves, ease pressure on the rupee and reduce the country's reliance on multilateral financing, while it continues fiscal and monetary reforms under its International Monetary Fund (IMF) programme.
The US Treasury declined to comment on the reported request. Pakistan's finance ministry did not immediately respond to Reuters' request for comment outside Asian business hours.
Pakistan's Finance Minister Muhammad Aurangzeb met Bessent in Washington on Tuesday and discussed the country's economic vulnerability to regional geopolitical developments, according to a ministry statement, which did not mention the reported request.
"Senator Aurangzeb sought greater US support for Pakistan's road to market, underpinned by improved access to international capital markets, higher foreign exchange reserves and enhanced sovereign credit ratings," the statement said.
It added that both sides reaffirmed their commitment to strengthening bilateral economic cooperation, encouraging greater US investment and advancing strategic projects.
Pakistan remains under a $7 billion IMF programme, which requires politically sensitive tax increases, spending restraint and structural reforms.
Exchange stabilisation facilities are rare US Treasury backstops, typically provided through the Exchange Stabilization Fund, that offer dollars, currency swaps or guarantees to support foreign exchange reserves and stabilise currencies.
Unlike the US Federal Reserve's permanent dollar swap lines with major central banks, these facilities are designed as temporary financial backstops for countries facing external pressures.
A 2025 package for Argentina was the first new exchange stabilisation facility extended to a foreign government since Uruguay received similar support in 2002, excluding Mexico's long-standing swap arrangement dating back to the 1940s.
Pakistan narrowly avoided a sovereign default in 2023 after securing a $3 billion IMF standby arrangement. It later obtained a $7 billion Extended Fund Facility, alongside a separate $1.3 billion loan to strengthen resilience against climate change and natural disasters.
However, the country's foreign exchange reserves remain heavily dependent on official financing, debt rollovers and deposits from China and Saudi Arabia.
That dependence was highlighted in April, when Pakistan repaid about $3.5 billion—roughly one-fifth of its reserves—to the United Arab Emirates, while Saudi Arabia provided $3 billion in fresh support.
Pakistan's central bank said in January that reserves could recover to nearly their 2021 record level, reaching $20 billion by the end of 2026.
A US exchange stabilisation facility would not only provide additional liquidity but also signal Washington's confidence in Pakistan's economy, helping reduce pressure on the rupee and lessen reliance on IMF disbursements and emergency bilateral support.
Although IMF-backed reforms have improved macroeconomic stability, they have come at a political cost through higher taxes, spending cuts and limited scope for development and welfare spending.
Ratings agency Fitch said in April that Pakistan's adherence to the IMF programme had strengthened its funding capacity, while rebuilding foreign exchange buffers had provided some protection against economic shocks stemming from conflict in the Middle East.
However, Fitch also warned that rising energy prices and potential supply disruptions could rapidly erode the country's reserves.
Foreign investment in Pakistan remains subdued due to recurring external crises, policy uncertainty, security concerns, restrictions on profit repatriation and a narrow export base, while its speculative-grade credit rating continues to keep borrowing costs high.
Pakistan has sought to deepen economic ties with the Trump administration through cooperation in cryptocurrency, real estate and mining.
It has signed a stablecoin agreement for cross-border payments with an affiliate of World Liberty Financial, the main cryptocurrency business linked to President Donald Trump's family. Islamabad has also pursued a memorandum of understanding with the US government to redevelop the Pakistan International Airlines-owned Roosevelt Hotel in New York and has courted US investment in the Reko Diq mining project, for which the US Export-Import Bank has announced $1.25 billion in financing.