Pakistan has asked the US for a $10 billion exchange stabilisation facility after playing a prominent role in negotiations over the Iran war, Reuters reported.
Islamabad has proposed a Bilateral Exchange Stabilization Support Facility with a maturity of up to five years. If approved, the arrangement could strengthen Pakistan’s foreign exchange reserves, ease pressure on the rupee and reduce its dependence on multilateral financing.
The request was made to US Treasury Secretary Scott Bessent, according to the report.
Pakistan Finance Minister Muhammad Aurangzeb met Bessent in Washington on Tuesday and raised concerns about the country’s vulnerability to regional geopolitical developments.
Aurangzeb sought greater US support for Pakistan’s access to international capital markets, higher foreign exchange reserves and improved sovereign credit ratings, the finance ministry said. The two sides also discussed increasing American investment and advancing strategic projects.
Pakistan remains under a $7 billion International Monetary Fund programme that requires tax increases, spending restraint and economic reforms. The country narrowly avoided default in 2023 and continues to depend on financing, loan rollovers and deposits from countries including China and Saudi Arabia.
Pakistan’s role in US-Iran mediation
The financial request follows months of diplomatic efforts by Pakistan to help end the Iran war, which began with US and Israeli strikes on Iran on February 28.
Pakistan, which enjoys direct contacts with both Washington and Tehran, emerged as a potential mediator. It shares a border and longstanding ties with Iran but has also strengthened relations with the Trump administration.
Unlike several Gulf countries involved in mediation, Pakistan does not host US military bases.
In addition to relaying at least half a dozen messages between the two warring nations by late March, Islamabad hosted US and Iranian teams for talks in April.
Efforts in May when army chief Field Marshal Asim Munir travelled to Tehran. Interior Minister Mohsin Naqvi also held talks with Iranian Foreign Minister Abbas Araqchi, while Qatar worked alongside Pakistan to narrow differences over Iran’s enriched uranium, sanctions and the Strait of Hormuz.
The mediation resulted in a preliminary agreement in June.
Prime Minister Shehbaz Sharif announced a 14-point memorandum aimed at ending the war and competing restrictions on shipping through the Strait of Hormuz. Pakistan and Qatar were central to the negotiations, with Qatar stepping in after the process nearly collapsed.
American and Iranian officials subsequently held technical talks in Doha in early July, meeting separately with Pakistani and Qatari mediators. Those discussions focused primarily on shipping through the Strait of Hormuz, while disputes over Iran’s nuclear programme remained unresolved.
The interim arrangement has since come under strain following renewed US-Iran attacks.
First Published: Jul 22, 2026 1:36 PM IST
