By Iftikhar Mashwani
ISLAMABAD : Pakistan and the United States are reportedly engaged in discussions over a proposed $10 billion Exchange Stabilization Support Facility aimed at strengthening Pakistan’s foreign exchange reserves and easing pressure on the national currency.
According to the reports, if such a facility is approved, Pakistan’s foreign exchange reserves could rise to around $28 billion, with some analysts suggesting it could help support the rupee against the US dollar. However, no official confirmation has been issued by either government regarding the proposed arrangement or its potential impact.
The reported discussions come amid a period of improving Pakistan–US relations over the past year. Observers have pointed to Pakistan’s diplomatic engagement during the US-Iran conflict, including the peace efforts attributed to Field Marshal Syed Asim Munir, as one of the factors contributing to closer bilateral cooperation.
The development also coincides with S&P Global’s recent upgrade of Pakistan’s sovereign credit rating, reflecting improved investor confidence and a more stable economic outlook.
If finalized, the proposed financial support facility could provide a significant boost to Pakistan’s external financial position and mark a new chapter in economic cooperation between Islamabad and Washington. However, economists note that sustainable economic recovery will ultimately depend on continued structural reforms, fiscal discipline, and export-led growth.
