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Pakistan's Finance Minister Muhammad Aurangzeb has formally requested a $10 billion Exchange Stabilisation Support Facility from the US Treasury to help strengthen the national economy, according to reports by Dawn and The Hindu. The request, made during a visit to Washington earlier this month, was confirmed by officials at Pakistan's embassy in Washington, although they did not provide further details. The US Treasury declined to comment on the matter.

Coverage Comparison

Dawn reported that Aurangzeb asked US Treasury Secretary Scott Bessent for the facility during a meeting, with the request first reported by Reuters and later confirmed by Pakistani officials in Washington. The newspaper noted that an official readout from the embassy referenced Aurangzeb's pursuit of US support for Pakistan's 'road-to-market' strategy—an initiative aimed at regaining full access to international capital markets—but did not mention the specific $10 billion figure.

The Hindu's coverage also highlighted the request, describing Pakistan's economic recovery as fragile and noting the country's heavy reliance on foreign assistance. The Hindu's report mentioned that Pakistan narrowly avoided default in 2023 after securing a $3 billion IMF loan, and that Islamabad is currently implementing economic reforms under a $7 billion IMF programme approved in 2024.

Both outlets reported that the proposed facility would rely on the US Treasury's Exchange Stabilisation Fund (ESF), which has historically been used to support foreign governments facing financial crises. Dawn noted that the fund could provide loans or other backstop facilities to Pakistan, with a maturity of up to five years, to bolster foreign exchange reserves, ease debt pressures, and help stabilise the economy.

Key Claims

  • Pakistan's Finance Minister Muhammad Aurangzeb requested a $10 billion Exchange Stabilisation Support Facility from the US Treasury to strengthen the national economy.
  • The proposed facility would rely on the US Treasury's Exchange Stabilisation Fund, providing loans or other backstop facilities to bolster foreign exchange reserves, ease debt pressures, and stabilise the economy.
  • Pakistan's economic recovery has been fragile, with heavy dependence on foreign assistance.
  • Pakistan narrowly escaped default in 2023 after the IMF approved a $3 billion loan programme.
  • Islamabad is currently implementing economic reforms under a $7 billion IMF programme approved in 2024.
  • The US Treasury has used the Exchange Stabilisation Fund to support foreign governments facing financial crises in the past.
  • Diplomatic sources in Washington said there were 'strong chances' that the $10 billion stabilisation request would be approved.