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Economic Crisis Deepens : Pakistan Requests $10 Billion Financial Lifeline from US
New Delhi : Struggling with a prolonged economic crisis, Pakistan has reportedly approached the United States seeking $10 billion (around ₹96,000 crore) in financial assistance to help stabilise its economy and strengthen its dwindling foreign exchange reserves.
According to international media reports, Pakistan has requested support under the Exchange Stabilization Facility, a mechanism used by the US Treasury to provide financial assistance to countries facing severe economic challenges. The proposed package is aimed at stabilising Pakistan’s currency, boosting foreign exchange reserves and reducing pressure on the country’s fragile economy.
Pakistan’s Finance Minister Muhammad Aurangzeb reportedly discussed the proposal with US Treasury Secretary Scott Bessent during a meeting in Washington. The request has been made under a proposed five-year bilateral arrangement.If approved, the financial package is expected to strengthen Pakistan’s foreign exchange reserves, support the Pakistani rupee and reduce its dependence on emergency funding from international financial institutions.
However, reports indicate that Pakistan will still be required to continue implementing the fiscal reforms and conditions prescribed by the International Monetary Fund (IMF).
Pakistan narrowly avoided a sovereign default in 2023 after securing a $3 billion IMF bailout, followed by an additional $7 billion loan programme and $1.3 billion in climate-related financial assistance. Despite these measures, the country’s economy continues to rely heavily on external support, including financial assistance from allies such as China and Saudi Arabia.
The international community is now closely watching whether the US will approve Pakistan’s latest request, a decision that could significantly influence the country’s economic recovery and regional financial stability.
