Pakistan has formally requested a $10 billion bilateral credit line from the United States to bolster its foreign reserves and stabilize its currency, government officials said on Tuesday. The proposed facility, dubbed a Bilateral Exchange Rate Stabilization Support Facility, would be structured for up to five years and aims to ease immediate financial pressures following a period of severe economic strain.
The request was conveyed to U.S. Treasury Secretary Scott Bessent last month, according to Khurram Schehzad, adviser to Pakistan’s finance minister. Schehzad described discussions with Washington as constructive, adding that the facility would serve as a confidence signal, supporting market access and attracting private capital. The move comes as Pakistan’s economy faced heightened risks of default in 2023, underscoring the urgency of securing external liquidity support.
The diplomatic push aligns with improved U.S.-Pakistan relations during President Donald Trump’s second term, with Islamabad emerging as a key mediator in the conflict between the U.S. and Iran. Prime Minister Shehbaz Sharif and Army Chief Asim Munir have been central to these regional diplomacy efforts, which have reportedly strengthened ties with Washington. The proposed credit line would complement Pakistan’s broader efforts to stabilize its financial position amid volatile global markets.
