Pakistan Requests $10 Billion US Fund Following Role in Iran War Mediation

Pakistan has asked the United States for a $10 billion exchange stabilization facility, according to a source familiar with the matter. The request comes after Pakistan played a mediating role in talks around the Iran war, boosting its diplomatic standing and raising hopes of economic support from Washington.

What Pakistan Is Asking For

Islamabad has proposed a bilateral exchange stabilization facility with a maturity of up to five years. If approved, it would help strengthen Pakistan’s foreign currency reserves, ease pressure on the rupee, and reduce dependence on multilateral lenders like the IMF. The US Treasury has not commented on the request.

Economic Talks in Washington

Pakistan’s finance minister met with US Treasury officials this week, raising concerns about how regional tensions affect the country’s economy. Both sides reaffirmed interest in deepening economic ties, though the funding request itself was not publicly confirmed by either government.

Background on Pakistan’s Financial Position

Pakistan remains under a $7 billion IMF program that has required tax hikes and spending cuts. The country previously avoided default in 2023 through emergency IMF support and has relied heavily on financial backing from allies including China, Saudi Arabia, and the UAE. Its central bank expects reserves to approach record levels by the end of 2026, though analysts warn that rising energy costs and regional instability could pressure that outlook.

Broader US-Pakistan Cooperation

The request follows a series of economic initiatives between the two countries, including agreements touching on cryptocurrency, real estate development, and mining investment.