Pakistan Seeks $10 Billion U.S. Exchange Stabilization Fund to Boost Forex Reserves

Pakistan has asked the United States for a $10 billion exchange stabilization facility to strengthen its foreign exchange reserves and reduce pressure on the Pakistani rupee, according to a Reuters report citing a source familiar with the matter.

The request comes after Pakistan played a role in facilitating talks related to the Iran conflict, a move that reportedly enhanced its diplomatic standing with Washington.

Reuters said Islamabad submitted the proposal to U.S. Treasury Secretary Scott Bessent, requesting the creation of a Bilateral Exchange Stabilization Support Facility worth $10 billion with a maturity of up to five years. Pakistani officials believe the funding would help stabilize the country’s external finances, ease pressure on the local currency, and reduce dependence on multilateral lenders.

The request comes as Pakistan continues implementing fiscal and monetary reforms under its International Monetary Fund (IMF) program. The country narrowly avoided a sovereign default in 2023 after securing a $3 billion IMF standby arrangement. It later received a $7 billion Extended Fund Facility, along with an additional $1.3 billion loan aimed at improving resilience against climate change and natural disasters.

Despite these financial packages, Pakistan’s foreign exchange reserves remain heavily dependent on official financing, loan rollovers, and deposits from key allies, including China and Saudi Arabia. This reliance leaves the country exposed to shifts in bilateral support and potential delays in IMF funding.

In April, Pakistan repaid approximately $3.5 billion—equivalent to about one-fifth of its foreign exchange reserves—to the United Arab Emirates. Saudi Arabia also extended fresh financial support totaling $3 billion during the same period, helping the country manage its external financing obligations.

If approved, the proposed U.S. exchange stabilization facility could provide Pakistan with greater financial flexibility, strengthen investor confidence, and improve its ability to manage external economic risks while supporting long-term currency stability.