Pakistan has requested a $10 billion currency support facility from the United States, leveraging its diplomatic role in facilitating talks related to the Iran conflict to seek economic relief from Washington.
Pakistan has approached US Treasury Secretary Scott Bessent for a Bilateral Exchange Stabilisation Support Facility with a maturity period of up to five years. If approved, the mechanism would bolster Pakistan’s foreign exchange reserves, reduce rupee pressure, and lower dependence on multilateral financial assistance.
Exchange stabilisation facilities are rare US Treasury instruments that provide dollars, currency swaps, or guarantees to support foreign reserves and stabilise currencies. They differ structurally from standing dollar swap arrangements maintained by the US Federal Reserve with major central banks.
Pakistan remains bound by a $7 billion International Monetary Fund programme requiring significant fiscal and monetary reforms, including tax increases and spending controls. The country narrowly avoided default in 2023 after securing a $3 billion IMF standby arrangement, followed by a $7 billion Extended Fund Facility and a separate $1.3 billion climate resilience loan.
The timing of Islamabad’s request reflects a strategic calculation. Pakistan’s mediation efforts in Iran war diplomacy have elevated its diplomatic standing with the Trump administration, creating a window to pursue economic benefits beyond traditional IMF support channels. The currency facility would serve both as a financial cushion and as a political signal of deepening US-Pakistan economic ties.
Pakistan’s foreign exchange reserves remain vulnerable, dependent heavily on official financing, rollovers, and deposits from China and Saudi Arabia. A US-backed stabilisation facility would reduce this reliance and provide dollar liquidity without the conditions typically attached to IMF disbursements.
Beyond the currency facility, Pakistan is pursuing broader economic cooperation with Washington across multiple sectors. The country has signed a stablecoin agreement for cross-border payments with an affiliate of World Liberty Financial, pursued redevelopment projects linked to the Roosevelt Hotel in New York, and sought US investment in mining operations including Reko Diq, where the US Export-Import Bank has committed $1.2 billion in financing.
The request underscores how geopolitical positioning translates into economic leverage. Pakistan’s willingness to facilitate dialogue on regional conflicts has become a tradeable asset in its negotiations with the Trump administration, which has prioritized both direct investment and strategic partnerships in South Asia.