Pakistan Seeks PKR 2.77 Trillion Loan From US After Iran Peace Talks End Without Breakthrough

Pakistan has reportedly approached the United States for a USD 10 billion Exchange Stabilisation Facility to strengthen its foreign exchange reserves and stabilise the Pakistani rupee. According to reports, the request came after Pakistan played a diplomatic role in facilitating talks related to the Iran conflict. The proposed financial support would help Islamabad tackle ongoing economic pressures and improve investor confidence. If approved, the facility could provide significant relief to Pakistan’s struggling economy.

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Pakistan Aims to Strengthen Reserves and Reduce IMF Dependence

The Pakistani government has asked US Treasury Secretary Scott Bessent to consider a bilateral exchange stabilisation arrangement with a repayment period of up to five years. Officials believe the proposed facility would ease pressure on the country’s foreign currency reserves while supporting financial stability. The government also hopes the assistance will reduce its dependence on multilateral lenders. At the same time, Pakistan continues implementing fiscal and monetary reforms under its IMF programme.

The request coincided with Finance Minister Muhammad Aurangzeb’s meeting with US officials in Washington. During the discussions, Aurangzeb highlighted the impact of regional geopolitical tensions on Pakistan’s economy. He also sought stronger US support to improve Pakistan’s access to international capital markets, increase foreign exchange reserves, and strengthen the country’s sovereign credit rating. Both sides expressed their commitment to expanding economic cooperation and encouraging greater American investment.

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Islamabad Requests US Exchange Stabilisation Facility

Pakistan remains under a USD 7 billion International Monetary Fund (IMF) programme that requires strict economic reforms, including higher taxes, reduced public spending, and structural changes. Although these measures have helped maintain financial discipline, they have also placed pressure on businesses and citizens. The government hopes additional support from the United States will reduce its reliance on IMF funding and provide greater financial flexibility. Officials continue searching for new sources of long-term economic stability.

Pakistan narrowly avoided a sovereign default in 2023 after securing emergency financial assistance from the IMF. Despite receiving additional support from countries such as Saudi Arabia and China, the nation continues to depend heavily on external financing and reserve rollovers. Recent repayments to the United Arab Emirates also highlighted the country’s financial vulnerabilities. The central bank expects foreign exchange reserves to recover gradually and aims to raise them to nearly USD 20 billion by the end of 2026.

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