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

Pakistan's central bank, the State Bank of Pakistan (SBP), has revealed that its forecast of foreign exchange reserves reaching $25 billion by the end of June 2027 does not account for a $10 billion Exchange Stabilisation Support Facility requested from the United States. Earlier this year, Pakistan sought the US facility to bolster its foreign exchange reserves, alleviate pressure on the local currency, and lessen dependency on bilateral financing and international lenders.

SBP Governor Jameel Ahmad clarified during a press conference, "I can say that the foreign exchange reserves outlook for $25 billion by end of June 2027 does not include it." Instead, Ahmad suggested that the reserves would primarily grow through the sale of Eurobonds and Panda bonds on international capital markets. He made these remarks at a press conference announcing the Monetary Policy Statement for the next six weeks, during which the policy rate was increased by 50 basis points to 12%.

Pakistan anticipates a response from Washington within the next few months concerning its request for the $10 billion stabilisation facility. Bloomberg News reported in late August 2026 that Islamabad hopes to capitalize on improved relations with the Trump administration. The maturity period of the facility, if granted, would extend up to five years.

Currently, Pakistan's foreign exchange reserves, held by the SBP, amount to approximately $21.5 billion, providing a three-month import cover. Ahmad expressed the goal of increasing this figure to $25 billion, which would extend the import cover to a four-month period.