World August 25, 2026 10:30 AM

Pakistan Seeks $10 Billion U.S. Support Facility as Ties With Washington Improve

Islamabad requests a Bilateral Exchange Stabilization Support Facility as part of efforts to shore up market confidence and access private capital

By Maya Rios
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Pakistan has formally requested a $10 billion stabilization facility from the United States and expects a decision from Washington within a few months. Officials describe engagement with the U.S. as constructive and say the proposed facility could act as a backstop to support market access and attract private investment as Pakistan looks to strengthen an economy that nearly defaulted in 2023.

Pakistan Seeks $10 Billion U.S. Support Facility as Ties With Washington Improve
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Key Points

  • Pakistan has requested a $10 billion Bilateral Exchange Stabilization Support Facility from the United States with an expected response within a couple of months - impacts sovereign financing and market access.
  • Officials say the proposed U.S. facility would act as a backstop and confidence signal, aiming to support market access and attract private capital - relevant to sovereign debt markets and investor flows.
  • The request comes amid improved diplomatic engagement between Pakistan and the United States, with Prime Minister Shehbaz Sharif and army chief Asim Munir playing prominent diplomatic roles.

Pakistan has asked the United States for a $10 billion financial facility and anticipates a response from Washington within a couple of months as it seeks to leverage warmer bilateral relations under President Donald Trump.

Khurram Schehzad, an adviser to the finance minister, described the talks with U.S. counterparts as "constructive," and said the proposed measure would serve more than a purely financial role. "The proposed US stabilization facility would also serve as a potential backstop and confidence signal, supporting market access and helping crowd in private capital," he told Bloomberg News.

The specific request was submitted to U.S. Treasury Secretary Scott Bessent for a Bilateral Exchange Stabilization Support Facility with a maturity of up to five years. That detail was reported last month.

Officials in Islamabad are pushing to capitalize on a period of closer engagement with Washington during President Trump’s second term. Pakistan has taken on a visible diplomatic role in recent Middle East mediation efforts, which has included prominent involvement by Prime Minister Shehbaz Sharif and army chief Asim Munir.

Government sources say Islamabad hopes the facility will provide both a direct financing option and a confidence-building signal to international markets and investors. By positioning a U.S.-backed instrument as a potential backstop, authorities aim to support Pakistan’s access to external market funding and to attract private capital that might otherwise remain on the sidelines.

Those moves arrive against the backdrop of an economy that came close to default in 2023. The requested facility, if approved, would have a maximum maturity of five years and is intended to reinforce balance-of-payments stability and market confidence during that period.

Pakistan expects to hear from U.S. officials within a few months as discussions continue. The government is pursuing the facility in parallel with diplomatic engagement that Pakistani leaders say has deepened during recent U.S.-Pakistan interactions.


Contextual note - Details reported here reflect the information made public by Pakistani officials and the named attributions. Where respondents described engagement as "constructive" and outlined the role of a stabilization facility as a backstop, those descriptions were provided by an adviser to the finance minister.

Risks

  • Uncertainty over Washington's response timeline - a decision is expected within a couple of months but is not guaranteed, affecting market expectations and sovereign financing plans.
  • If the requested facility is limited to a maturity of up to five years, its duration may constrain longer-term financing strategies for Pakistan and influence investor perceptions.
  • Pakistan's economy, which came close to default in 2023, remains vulnerable to shocks; reliance on an external backstop may not fully resolve underlying fiscal and balance-of-payments pressures.

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