Pakistan is hopeful of getting an update by September on its request to the United States for an Exchange Stabilisation Facility.
Talking to media on Wednesday, Finance Minister Muhammad Aurangzeb said Pakistan’s proposal was currently under consideration by the US Treasury Department and that developments were expected next month.
If approved, the facility would provide significant support to Pakistan’s foreign exchange reserves and financially strained economy.
Aurangzeb said Pakistan was also working to secure longer repayment periods for bilateral loans, with a target of extending maturities to 10 years. He stated that the government was examining several possibilities for restructuring the repayment schedule.
According to Aurangzeb, talks were also continuing with the US Export-Import Bank (EXIM Bank) and other financial institutions.
Pakistan had sought a facility of up to $10 billion. The request comes after Pakistan played a role in facilitating diplomatic engagement surrounding the US-Iran conflict, raising expectations that the country could secure greater economic support from the US and other international partners.
An agreement with the US could strengthen Pakistan’s reserve position, reduce pressure on the rupee and lessen the country’s dependence on multilateral lenders. Islamabad is meanwhile implementing strict fiscal and monetary measures under its ongoing programme with the International Monetary Fund (IMF).
