News
Aug 21 , 2026
Pakistan Expects US Decision on $10Bn Exchange Stabilization Facility Next Month
Islamabad: Pakistan expects a decision by the US Treasury Department next month on its request for a $10 billion exchange stabilization facility, as it seeks to shift from bilateral borrowing towards longer-term, market-based financing, Finance Minister Muhammad Aurangzeb said on Wednesday.
Talking to journalists at the FBR here on Wednesday after launching the Retailers’ Fixed Scheme, Aurangzeb said Pakistan’s request to the US Treasury Department for the facility was currently under consideration. “We have requested the US Treasury Department for an exchange stabilization facility and expect a decision by September,” the finance minister said.
He explained that Pakistan was not negotiating a conventional credit line or loan with the United States. Instead, the proposed arrangement would be aimed at currency and exchange-rate stability and would form part of Pakistan’s efforts to access longer-term financing.
He said Pakistan was looking at market-based financing with maturities of five, seven and 10 years and intended to increasingly tap instruments such as Eurobonds and Islamic Sukuk. The government wanted to gradually reduce its dependence on bilateral borrowing and move towards market-based financing, which generally offered longer maturities.
He said Pakistan was also working with international rating agencies to improve its sovereign credit rating from B to B+, a level the country had previously achieved in 2004. The finance minister said he was hopeful that Pakistan would secure a favourable arrangement with the United States, although some issues remained to be addressed before a deal could be finalised.
Aurangzeb revealed discussions were also underway to extend the maturity of bilateral loans, with the government seeking maturities of up to 10 years. Different options were being considered to improve the country’s debt maturity profile. Aurangzeb said discussions were continuing with the US Export-Import Bank and other American institutions as part of efforts to finalise financing arrangements with Washington.
Separately, the finance minister said talks with China were underway over $1.3 billion in commercial refinancing and expressed confidence that the refinancing process would be completed soon. – The News
Courtesy The News
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