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Pakistan seeks $10 billion in US backstop facility to boost reserves, source says
The rare U.S. backstop could bolster reserves and ease pressure on the rupee as Pakistan seeks to cut reliance on IMF financing.
- On Tuesday, Pakistan requested a $10 billion Bilateral Exchange Stabilization Support Facility from Treasury Secretary Scott Bessent, according to a source briefed on the matter, to bolster reserves and ease rupee pressure.
- Pakistan's reliance on official financing from China and Saudi Arabia was exposed in April when Islamabad repaid about $3.5 billion to the Arab Emirates, underscoring vulnerability despite rebuilt foreign-exchange buffers.
- Exchange stabilization facilities are rare U.S. Treasury backstops; a 2025 Argentina package was the first new operation since Uruguay in 2002. Pakistan remains under a $7 billion IMF Extended Fund Facility requiring strict fiscal reforms.
- Islamabad has leveraged its role in brokering Iran war talks and ties to the Trump administration, including $1.2 billion in Export-Import Bank financing for Reko Diq mining, to pursue this financial backstop.
- The U.S. Treasury declined to comment, while Pakistan's embassy confirmed the request without providing details, leaving significant uncertainty about the facility's approval prospects and timeline.
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Leveraging Iran war mediation? Report says Pakistan seeks $10 billion US lifeline to boost reserves
If the facility is approved, it would help strengthen Pakistan's foreign exchange reserves, reduce pressure on the Pakistani rupee and lessen the country's dependence on multilateral lenders, while allowing Islamabad to continue implementing fiscal and monetary reforms under its IMF programme.
·New Delhi, India
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Pakistan Seeks $10 Billion Fund From US After Mediating Iran Talks
Pakistan has asked the United States for a $10 billion exchange stabilization facility, according to a source briefed on the matter, which, if approved, could provide a lifeline for the cash-strapped South Asian economy.
·Boca Raton, United States
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Coverage Details
Total News Sources36
Leaning Left4Leaning Right11Center11Last UpdatedBias Distribution42% Center, 42% Right
Bias Distribution
- 42% of the sources are Center, 42% of the sources lean Right
42% Right
L 16%
C 42%
R 42%
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