ISLAMABAD: Pakistan has stepped up efforts to secure a $10 billion Exchange Stabilisation Support Facility from the United States, with Finance Minister Muhammad Aurangzeb confirming that a decision on the request is expected by September.
Speaking at a joint press conference with Minister of State for Finance Bilal Azhar Kayani after the launch of the Federal Board of Revenue’s (FBR) Retailers Scheme App, Aurangzeb said Pakistan had approached the US Treasury for the proposed facility.
He clarified that the arrangement was not a conventional loan or credit line, but a mechanism aimed at strengthening currency and foreign exchange stability and supporting Pakistan’s access to international capital markets.
“The US Treasury has Pakistan’s request for the Exchange Stabilisation Support Facility, and a decision is expected by September,” the finance minister said.
Aurangzeb said the proposed facility could involve market-based financing with maturities of five, seven or 10 years.
He said Pakistan was moving towards market-based financing, including Eurobonds and Islamic sukuk, as economic stability improved, while reducing its reliance on bilateral borrowing.
“We are moving towards market-based financing,” he said, adding that such arrangements generally offered longer maturities than bilateral agreements.
The minister said Pakistan also wanted to extend the maturity of bilateral loans to up to 10 years and that several options were being considered in this regard.
He praised the financial support provided by friendly countries during difficult periods, particularly over the past decade and the last three years, saying the extension of loan maturities by partner countries was a positive development.
Aurangzeb said negotiations were continuing with the US EXIM Bank, the US International Development Finance Corporation (DFC) and other institutions as Pakistan worked to finalise the proposed arrangement with Washington.
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He expressed optimism that the talks with the United States would produce a favourable outcome, while acknowledging that some issues remained under discussion.
The finance minister further said Pakistan was also engaged in talks with China over $1.3 billion in commercial refinancing and expected the process to be completed soon.