US Treasury Secretary Scott Bessent has met Pakistan's Finance Minister Muhammad Aurangzeb and welcomed the country's progress in implementing economic reforms and laying the groundwork for a return to international capital markets, Treasury said in a statement.
Wednesday’s statement did not address Pakistan's request for a $10 billion exchange stabilisation facility, first reported by Reuters news agency.
But Treasury said Bessent emphasised the importance of Pakistan's work to continue its reforms, become more economically self-reliant, boost growth and strengthen its economic resilience.
"Secretary Bessent welcomed the progress Pakistan has made in restoring macroeconomic stability and advancing fiscal consolidation, recognising the government's efforts to implement significant economic reforms," Treasury said.
"Secretary Bessent expressed support for Pakistan's efforts to build greater economic self-reliance and commended the government's commitment to creating the conditions for a successful return to international capital markets," it said.
A US official on Wednesday confirmed that Pakistan had requested a $10 billion currency swapline during the meeting with Bessent, which if approved, could provide a lifeline for the cash-strapped South Asian economy.
US-Israeli war on Iran
Influential Pakistani daily Dawn, citing diplomatic sources in Washington, reported that there were "strong chances" that the $10 billion stabilisation request would be approved.
Officials at Pakistan's embassy in Washington confirmed Aurangzeb's request to Bessent, Dawn reported, adding that the Trump administration "has a keen interest in remaining engaged" with Islamabad and has "more than once pledged" to help strengthen the country's economy.
Pakistan has been hit hard by the US-Israeli war on Iran, given its dependence on Gulf energy imports, remittances and financing support from the region.
Pakistan narrowly avoided default in 2023 with a $3 billion IMF standby deal and later secured a $7 billion Extended Fund Facility, along with a separate $1.3 billion loan to build up its resilience to climate change and natural disasters.
But its reserves still depend on official financing, rollovers and deposits from China and Saudi Arabia.
Islamabad's request for the bilateral currency stabilisation fund comes after it stepped up to broker talks on ending the war on Iran, which helped raise its diplomatic profile and earned praise from the Trump administration.
