In a bid to shore up its fragile economy, Pakistan has reportedly asked the United States for a $10 billion exchange stabilization facility. The request comes as Islamabad tries to capitalize on its improved diplomatic standing after playing a role in Iran war negotiations, hoping that translates into financial support from Washington and other partners.

According to a Reuters report on Wednesday, Pakistan's Finance Minister Muhammad Aurangzeb sent a letter to Treasury Secretary Scott Bessent proposing a Bilateral Exchange Stabilization Support Facility worth $10 billion with a maturity of up to five years. Aurangzeb met with Bessent in Washington on Tuesday, where he discussed Pakistan's economic vulnerability to regional geopolitical developments. The finance ministry's statement didn't mention the specific request but emphasized Aurangzeb's plea for more U.S. support for Pakistan's economic journey.

If approved, the facility could strengthen Pakistan's foreign exchange reserves, support the rupee, and lessen the country's dependence on multilateral financing. The move comes as Islamabad implements tighter fiscal and monetary measures under its International Monetary Fund (IMF) program. The Treasury Department did not immediately respond to requests for comment.

Pakistan Faces Funding Pressure

The request follows a similar financial lifeline extended to Argentina. In October, the Treasury Department under Bessent finalized a $20 billion currency swap for Argentina, allowing its central bank to exchange pesos for U.S. dollars. Argentina's President Javier Milei visited the White House to meet with President Donald Trump, Bessent, and top U.S. officials to finalize the arrangement. That 2025 package was the first new foreign-government exchange stabilization facility since Uruguay in 2002, excluding Mexico's long-standing swap line, which dates back to the 1940s and is now valued at $9 billion.

As for Pakistan, it remains reliant on a $7 billion IMF bailout program that has required unpopular tax hikes, spending cuts, and economic reforms. Although it avoided default in 2023 and has received additional support for climate resilience, its foreign exchange reserves still depend heavily on financing and rollovers from countries like China and Saudi Arabia. That leaves the economy vulnerable to delays in IMF funding and changes in external support.

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