Pakistan seeks USD10bn US support, Aurangzeb confirms

Finance Minister Muhammad Aurangzeb confirmed on Wednesday that Pakistan has formally asked the United States for a USD 10 billion Exchange Stabilisation Support Facility, according to Business Recorder. The request went to the US Treasury Department and talks are ongoing, though the minister said nothing has been finalised. He presented the proposal as a signal on currency and foreign exchange stability rather than a loan or credit line.

Aurangzeb also said Islamabad is discussing its eventual exit from current financing arrangements, with views expected from Exim Bank or the US Treasury by the end of September. The government wants to shift from repeated bilateral rollovers toward market-based borrowing, and he said every current initiative is aimed in that direction. He conceded that some efforts may run into problems, while the government remains committed to reducing reliance on short-term arrangements.

Looking ahead, the minister tied a stronger sovereign rating to longer-tenor borrowing of five, seven or 10 years in international markets. He said Pakistan aims for at least a B+ rating, having seen its sovereign score unchanged since 2003-04, and that three arrangers have been appointed. Earlier instruments, including a Eurobond, an Islamic Sukuk and a dollar-settled rupee-linked bond, were cited as part of the effort to regain market access.