Pakistan seeks $10 billion support from US to maintain foreign reserves
New Delhi, July 23
Pakistan's finance minister, Muhammad Aurangzeb, has requested the US Treasury Secretary Scott Bessent for a $10 billion Exchange Stabilisation Support Facility to bolster the country's foreign exchange reserves and ease debt pressures, a new report has said.
The report from India Blooms News Service cited a Dawn report that officials at Pakistan's embassy in Washington confirmed Aurangzeb's request in talks with US Treasury Secretary Scott Bessent but did not provide additional details.
Further, the embassy's official readout mentioned Aurangzeb seeking US support though it did not mention the $10 billion figure.
The proposed facility would allow the US Treasury, through its Exchange Stabilization Fund, to extend loans or other financial backstops to strengthen reserves.
Pakistan's economic roadmap focuses on improving access to international capital markets, strengthening foreign exchange reserves, and sovereign credit ratings, as per the statement.
A post by Pakistan's finance ministry on X said Aurangzeb had discussed the country's journey toward macroeconomic stability, sustainable and export-led growth with Bessent
He also highlighted the adverse impact of regional security developments on the country's economy.
"Diplomatic sources in Washington told Dawn there were "strong chances" that the $10 billion request would receive US approval," the report said, adding that the Trump administration is keen to "remain engaged" with Pakistan.
Another report earlier this month said Pakistan's economy is under mounting pressure as inflation touched 11.7 per cent in May and economists warned the country risks slipping into a cycle of weak growth, rising prices and financial strain.
Economists attributed the rising inflation to a sharp rise in transport costs and perishable food prices, each up about 15 per cent, alongside a severe foreign‑exchange squeeze and a soaring oil import bill.
All these factors have eroded purchasing power and weighed heavily on economic activity, the report noted.
The US-Iran war had disrupted supply chains worldwide but Pakistan is more to external shocks because of its heavy dependence on imported energy and its fragile balance-of-payments position.
— IANS
Reader Comments
Sad to see a neighbour always in crisis. But instead of blaming regional security, Pakistan should focus on economic reforms like India did. We also faced challenges but now our forex reserves are robust. #EconomicReformsMatter
Interesting how the US is "keen to remain engaged" with Pakistan. Meanwhile, India is building strong ties with US through trade and tech. Pakistan's begging bowl approach won't help long term. They need structural changes.
Honestly, I feel bad for the common people in Pakistan. They're suffering from inflation and debt burden while their government keeps asking for bailouts. India should focus on helping our own vulnerable sections, not get dragged into this.
$10 billion? 🤔 That's like them asking for pocket money. But seriously, their economy is in shambles because of poor policies and terrorism. India's 1991 reforms showed that opening up and fiscal discipline work better.
Respectfully, Pakistan needs to stop blaming external factors for their problems. India faced COVID and global shocks too, but we managed because of strong fundamentals. Begging from US won't fix their structural issues.
It's like watching a friend repeatedly borrow money. Pakistan's debt spiral
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