FINANCE Minister Muhammad Aurangzeb has reportedly asked US Treasury Secretary Scott Bessent to provide Pakistan with a $10 billion Exchange Stabilization Support Facility to help strengthen the national economy. The proposed facility with a maturity of up to five years would be a financial mechanism under which the US government, through the Treasury’s Exchange Stabilization Fund, would provide loans or other backstop facilities to Pakistan to bolster its foreign exchange reserves, ease debt pressures and help stabilize the economy.
Pakistan is no stranger to relying on bailout packages or external support. Alongside programmes with international financial institutions, the country has repeatedly depended on foreign exchange assistance from friendly nations, particularly Saudi Arabia and China. More recently, Pakistan returned the foreign exchange support earlier extended by the United Arab Emirates. If approved, the United States would become the latest partner to extend such assistance. Given the current upward trajectory of bilateral relations, there are strong changes that the US will approve this facility. The request on the part of Pakistan has come at a difficult time. Regional instability, particularly the Iran-US conflict and its impact on global energy markets, has increased Pakistan’s import bill and placed additional strain on an economy already navigating fiscal and external sector challenges. Seeking financial support under such circumstances is understandable. However, the larger question remains: how long can Pakistan continue to sustain its economy through periodic external lifelines? Encouragingly, Pakistan’s diplomatic standing has improved in recent times, opening new avenues of engagement with key global and regional partners. This goodwill should now be translated into stronger economic dividends. Instead of limiting relationships to financial assistance, we must leverage improving diplomatic capital to expand trade, attract investment, promote exports and secure technology partnerships. External support can provide breathing space, but lasting economic resilience will come only through structural reforms and by bolstering exports. The true success lies not in securing assistance, but in building an economy that no longer depends on periodic bailouts.
