Pakistan Requests $10 Billion Support from U.S.
Pakistan’s Finance Minister, Mohammad Aurangzeb, recently urged U.S. Treasury Secretary Scott Bessent to approve a $10 billion Bilateral Exchange Stabilization Support Facility during discussions in Washington on Tuesday. This request seems to hinge on goodwill, especially following Pakistan’s role in facilitating talks between the U.S. and Iran.
According to a report from Reuters, which cited “two persons briefed on the matter,” Aurangzeb submitted a written request to Bessent. Although U.S. officials affirmed this information, Bessent did not address the funding request in his remarks after the meeting, and there was no mention of it in the Treasury Department’s official statements.
While Pakistan’s formal statement did not explicitly refer to this request, it emphasized Aurangzeb’s call for “cooperation” from the U.S. to bolster Pakistan’s “expansion of market access based on its foreign exchange reserves and sovereign credit rating.” The proposed fund would play a vital role in achieving these objectives.
As per U.S. sources, Pakistan’s plea essentially constitutes a “currency swap line,” a credit facility intended to utilize the stable U.S. dollar to support the Pakistani rupee.
This year, Pakistan received a $3 billion bailout from the International Monetary Fund (IMF), which helped it narrowly avoid a credit default, with an additional $7 billion projected for 2024. S&P Global noted these measures have significantly stabilized the currency, although it recently downgraded Pakistan’s fiscal outlook to a ‘B’ grade in its preliminary assessment.
According to S&P Global, future upgrades could be forthcoming if Pakistan maintains fiscal discipline over the next couple of years, keeping its debt below 3% of GDP. Still, they cautioned that a rapid increase in interest rates might lead to credit rating downgrades.
The ongoing Iranian crisis has generated pessimistic economic forecasts throughout the Middle East, which may explain why Aurangzeb sought Bessent’s assistance. The Pakistani rupee struggled against the U.S. dollar in 2025 but has gained ground in 2026. However, there are concerns in Islamabad that regional inflation could undermine these gains.
The Pakistani dawn newspaper reported that “diplomatic sources in Washington” suggested a “strong possibility” that Aurangzeb’s request could be approved, considering President Trump’s interest in strengthening ties with Pakistan and boosting its economy.
Furthermore, the Financial Times highlighted that Pakistan’s request mirrors a $20 billion currency swap line previously granted to Argentina by the Trump administration, a loan that was quickly repaid. Other Middle Eastern allies have called for similar swap lines to mitigate the impact of the Iran crisis. Reports indicate that Pakistan has committed to repaying the U.S. in full within five years.
