Pakistan has formally requested a $10 billion Exchange Stabilisation Support Facility from the United States to strengthen foreign exchange stability and boost investor confidence, Finance Minister Muhammad Aurangzeb said.
Aurangzeb clarified that negotiations with the US are still ongoing and that no final agreement has been reached. The proposed facility is aimed at supporting confidence in Pakistan’s currency and foreign exchange position.
The finance minister said Pakistan is also discussing its broader financing strategy with US institutions and expects feedback from the US Exim Bank or US Treasury by the end of September.
According to Aurangzeb, the government wants to reduce its dependence on repeated bilateral financing rollovers and shift toward longer-term, market-based financing.
He said Pakistan remains committed to securing financing with longer maturities, while acknowledging that some ongoing initiatives could succeed and others could face challenges.
Aurangzeb also said the government is working to improve Pakistan’s sovereign credit rating and aims to move toward a B+ rating. He noted that the country’s sovereign rating has remained largely unchanged since 2003-04.
A stronger credit rating could improve Pakistan’s access to international capital markets and enable the country to secure financing through five-, seven- and 10-year instruments.
The finance minister emphasized that the proposed $10 billion US facility would not operate as a conventional loan or credit line. Instead, he described it as a mechanism that could signal greater confidence in Pakistan’s currency and foreign exchange stability.
Pakistan has already begun preparing for renewed access to international debt markets and has appointed three arrangers for the process.
The government has also explored various debt instruments, including a Eurobond, Islamic Sukuk and a dollar-settled rupee-linked bond.
Aurangzeb said Pakistan ultimately aims to raise funds through five-, seven- and 10-year market-based instruments, which could help reduce reliance on short-term bilateral financing rollovers and support a more sustainable external financing strategy.
