SBP says requested $10bn US facility not factored into FX reserve projection

Pakistan’s central bank said on Monday its projection of foreign exchange reserves reaching a record $25 billion by end-June 2027 did not include the requested $10 billion Exchange Stabilisation Support Facility from the United States.

Earlier this year, Pakistan formally requested a $10 billion facility from the US to strengthen its foreign exchange reserves, ease pressure on the rupee and reduce reliance on bilateral financing arrangements and multilateral lenders.

“I can say that the foreign exchange reserves outlook for $25 billion by end of June 2027 does not include it [the requested $10 billion Exchange Stabilisation Support Facility from the US,“ State Bank of Pakistan (SBP) Governor Jameel Ahmad said while replying to a question on the requested inflows from the US.

Rather, the reserves would partly surge with the sale of Eurobonds and Panda bonds in international capital markets, Ahmad added.

He was speaking at a press conference held to announce the Monetary Policy Statement for the next six weeks, increasing the policy rate by 50 basis points to 12%.

Pakistan expects a response from Washington within the next couple of months on its request for a $10 billion stabilisation facility, Bloomberg News reported in late August 2026, as Islamabad seeks to capitalise on improved ties with the Trump administration.

The maturity period of the facility, if approved, would be up to five years.

Pakistan’s FX reserves (held by SBP) are standing at around $21.5 billion at present, which provides a three-month import cover. “We are targeting to take it to $25 billion, increasing the import cover to a 4-month period,” he said.