ISLAMABAD: Pakistan expects progress by September on its request to the United States for an Exchange Stabilisation Facility, Finance Minister Muhammad Aurangzeb said on Wednesday, as Islamabad seeks additional financial support to strengthen its foreign exchange reserves and ease pressure on the economy.
Speaking to the media in Islamabad, Aurangzeb said the request was currently under consideration by the US Treasury Department, and that progress was expected by September.
If approved, the facility could provide significant support to Pakistan’s economy and strengthen its ability to manage external financial pressures.
Pakistan seeks longer loan repayment period
Aurangzeb also said Pakistan was working to extend the maturity period of its bilateral loans, with Islamabad seeking to increase the repayment period to 10 years.
بریکنگ نیوز: پاکستان نے امریکہ سے 10 ارب ڈالرز مانگ لیے، رقم فراہمی کی درخواست Exchange stabilization facility کے تحت دی گئی ہے، وفاقی وزیرِ خزانہ سینیٹر محمد اورنگزیب نے درخواست دینے کی تصدیق کر دی pic.twitter.com/rVqYRSjWno
— Ehtsham Kiani (@ehtshamkiani) August 19, 2026
The finance minister said “various options” were being considered to extend the maturity of the loans. He added that discussions were also continuing with the US EXIM Bank and other relevant institutions as Pakistan explores ways to ease its external financing pressures.
If approved, the facility would help bolster Pakistan’s foreign exchange reserves, ease pressure on the rupee and reduce the country’s dependence on multilateral financing. The support would come as Islamabad continues to implement tighter fiscal and monetary policies under its ongoing programme with the International Monetary Fund (IMF).
IMF programme continues to shape economic policy
Pakistan remains under the IMF’s $7 billion programme, which has required the government to implement politically difficult measures, including higher taxes, spending controls and structural reforms aimed at stabilising the economy and improving public finances.
The proposed US facility could provide additional financial space for Islamabad as it continues to meet the conditions of the IMF programme and manages its external financing requirements.
How exchange stabilisation facility works
Exchange Stabilisation Facilities are relatively rare forms of US Treasury support, generally provided through the Exchange Stabilisation Fund.
Such arrangements can involve dollar support, currency swaps or guarantees designed to strengthen a country’s foreign exchange reserves and help stabilise its currency during periods of financial stress.
These facilities are separate from the permanent dollar swap lines maintained by the US Federal Reserve with a number of major central banks. The Federal Reserve swap arrangements provide an international supply of US dollars intended to support financial stability and ensure access to dollar liquidity.
Also Read: Pakistani Oil Refineries Cross $1bn Export Mark
A 2025 package for Argentina represented the first new foreign-government Exchange Stabilisation Facility operation since Uruguay in 2002, apart from Mexico’s long-standing swap arrangement. Mexico’s facility dates back to the 1940s and is currently valued at $9 billion.
