Pakistan expects US reply on $10b stabilisation facility 'soon'

According to The Express Tribune, Islamabad expects Washington to respond within about two months to its appeal for a $10 billion exchange stabilisation arrangement. Adviser to the Finance Minister Khurram Schehzad called discussions with the US constructive in remarks to Bloomberg on Tuesday. He described the facility as a possible backstop and confidence signal that could help draw in private capital.

Pakistan made the request to US Treasury Secretary Scott Bessent last month, seeking a term of as long as five years, as reported by Reuters. Finance Minister Muhammad Aurangzeb explained that the proposal is designed to signal steadiness for the currency rather than function as ordinary borrowing. He said the US Treasury is still reviewing the request and that approval could add financial support while the economy works on its external position, with progress anticipated in September.

If the arrangement is agreed, it could ease strain on the currency, add to reserves and reduce dependence on multilateral lenders, while fiscal and monetary tightening continues under the IMF programme. Moody's lifted Pakistan to B3 from Caa1 on Monday but flagged weak governance indicators, including rule of law and corruption control. The rating remains seven notches below investment grade.