Federal Minister for Finance and Revenue Senator Mohammad Aurangzeb on Wednesday confirmed the Exchange Stabilization Feasibility for a $10 billion loan to the United States of America (USA).
Talking with the media, Mohammad Aurangzaib said that Pakistan’s application is with the United States Treasury Department, and a decision will be made in September 2026.
Mohammad Aurangzeb said that there is a possibility to enhance the grace period for two-sided loans, and different options are currently under review.
He said that talks are underway with the US Exim Bank, CDF, and other relevant departments in this regard.
Pakistan remains under $7 billion IMF discipline that has required politically unpopular tax increases, spending restraint and reforms.
Exchange stabilisation facilities are rare US Treasury backstops, usually routed via the Exchange Stabilisation Fund, that provide dollars, swaps or guarantees to support reserves and steady currencies.
These facilities are different from the permanent standing dollar swap lines that the US Federal Reserve has with some major central banks and act as an international supply line of US dollars to underpin financial stability.
