ISLAMABAD: Pakistan expects Washington to respond within the next couple of months to its request for a proposed $10 billion bilateral stabilisation facility, as Islamabad seeks to strengthen investor confidence and improve its access to international capital markets.

Finance Minister Muhammad Aurangzeb had earlier confirmed that Pakistan approached US Treasury Secretary Scott Bessent for the facility. Adviser to the Finance Minister Khurram Schehzad said discussions with Washington had been “constructive” and that Pakistan expected a response soon.

The proposed arrangement is being described as a Bilateral Exchange Stabilisation Support Facility with a maturity of up to five years. Pakistani officials have stressed that it would not be a conventional loan or credit line.

Aurangzeb said the facility would primarily serve as a confidence signal for Pakistan’s currency and foreign exchange markets. Such a backstop could help Islamabad return to international debt markets and attract private investment.

If approved, the arrangement could strengthen Pakistan’s foreign exchange reserves, ease pressure on the rupee, and reduce dependence on emergency financing from multilateral and bilateral partners.

The request comes as Pakistan continues implementing reforms under its $7 billion International Monetary Fund programme, including fiscal consolidation, tax measures, and monetary adjustments.

Meanwhile, Moody’s recently upgraded Pakistan’s sovereign credit rating from Caa1 to B3, although the country remains firmly in the highly speculative category. The rating agency continues to highlight concerns surrounding governance, corruption, and institutional effectiveness.