Aurangzeb seeks $10bn support facility from US

WASHINGTON: Finance Minister Muhammad Aurangzeb on Tuesday asked US Treasury Secretary Scott Bessent to provide Pakistan with $10 billion Exchange Stabilisation Support Facility to help strengthen the national economy.

The request, first reported by Reuters, was confirmed by officials at Pakistan’s embassy in Washington. However, they did not provide any details. The US Treasury also declined to comment.

An official readout issued by the embassy noted that Aurangzeb had sought US support for Pakistan’s road-to-market, based on improved access to international capital markets, higher foreign exchange reserves, and enhanced sovereign credit ratings.

However, the statement made no mention of the $10bn request.

According to the news agency, Islamabad is seeking the bilateral stabilisation facility, with a maturity of up to five years.

The proposed facility would be a financial mechanism under which the US government, through the Treasury’s Exchange Stabilisation Fund, would provide loans or other backstop facilities to Pakistan to bolster its foreign exchange........

© Dawn Business