Pakistan seeks $10bn US Exchange Stabilisation Support Facility, Aurangzeb confirms

Business Recorder reported that Finance Minister Muhammad Aurangzeb has verified a formal request from Pakistan to the United States for a $10 billion Exchange Stabilisation Support Facility. According to the minister, the aim is to bolster currency and foreign exchange stability, not to create a standard borrowing arrangement. Talks with the United States are still ongoing, and nothing has been finalised yet.

Aurangzeb also said Islamabad is discussing its eventual exit from current financing arrangements and expects a response from Exim Bank or the US Treasury by the end of September. The government wants to step away from repeated bilateral rollovers and rely more on market-based financing. He acknowledged that some of these initiatives may not succeed, though the objective remains unchanged.

Aurangzeb said the government is engaging with international credit rating agencies to improve the sovereign rating, which has stayed unchanged since 2003-04. He indicated that a better rating could open the way to borrowing from global markets with maturities of five, seven or 10 years, with a goal of at least B+. He also said three arrangers have been appointed, and pointed to a Eurobond, an Islamic Sukuk and a rupee-linked bond settled in dollars as recent instruments.