US Treasury faces decision on Pakistan’s $10 billion request for economic support

Islamabad is awaiting a response from one of Washington’s most powerful but lesser-known financial instruments after requesting a $10 billion Exchange Stabilisation Support Facility aimed at strengthening the country’s economy. 

The proposal was made by Pakistan’s Finance Minister Muhammad Aurangzeb to US Treasury Secretary Scott Bessent in the course of his July 2026 visit to Washington.

The request comes as Pakistan continues to face external financing challenges, including the need to maintain foreign exchange reserves, meet international debt obligations and stabilize its currency market, as Pakistani media point out(https://www.dawn.com/news/2019811).

Unlike traditional support programmes provided by multilateral institutions, a facility through the US Treasury’s Exchange Stabilisation Fund (ESF) would represent a direct bilateral financial arrangement between the United States and Pakistan.

If approved, an ESF-backed facility could provide Pakistan with additional liquidity at a critical time. It could also assist the State Bank of Pakistan in managing external payment pressures, including import financing and debt servicing, while improving market confidence in the country’s ability to meet international obligations.

Agha Adeel Saadat, a former International Monetary Fund (IMF) economist who now works for a US financial firm, told the news outlet that such a facility could provide Pakistan with “an important financial buffer” by strengthening foreign exchange reserves, improving investor confidence and reducing short-term external financing risks.

“At a time of heightened geopolitical uncertainty in the Middle East and continued volatility in global oil prices, Pakistan remains vulnerable because of its dependence on imported energy,” he said.

“A stronger reserve position would enable the State Bank of Pakistan to better manage exchange-rate volatility, meet external debt obligations and cushion temporary external shocks without disrupting economic activity.”

For Pakistan, which has repeatedly sought international assistance to address balance-of-payments pressures, an ESF facility would represent a new form of financial support from Washington.

However, as the publication notes, the key question remains whether the US government views the request as an appropriate use of the ESF and whether the two sides can agree on the structure and conditions of the potential assistance.

If approved, the facility would become one of the most significant recent bilateral financial arrangements between Pakistan and the United States. Nevertheless, experts caution that it would not by itself address the country’s deeper economic challenges.

Saadat said the proposed support should be viewed as “a bridge to stability rather than a substitute for structural reforms.”

He added that Pakistan would still need to undertake broader economic reforms, including expanding its tax base, increasing exports, improving productivity and maintaining greater fiscal discipline by reducing non-essential government spending, including costly official purchases and other discretionary expenditures.

By Nazrin Sadigova