Bessent Praises Pakistan’s Reform Momentum, Signals Path Toward Capital Market Re‑Entry

By Andrea Shalal

WASHINGTON, July 22 (Reuters) – U.S. Treasury Secretary Scott Bessent met with Pakistan’s Finance Minister Muhammad Aurangzeb on Tuesday, praising the nation’s advances in economic reform and its preparations to re‑engage with global capital markets, according to a Treasury statement released Wednesday.

The statement did not comment on Pakistan’s request for a $10 billion exchange‑stabilization facility, first reported by Reuters.

Treasury added that Bessent underscored the importance of Pakistan’s continued reform agenda, aiming to enhance economic self‑reliance, stimulate growth, and bolster overall economic resilience.

“Secretary Bessent welcomed Pakistan’s progress in restoring macroeconomic stability and advancing fiscal consolidation, acknowledging the government’s efforts to enact major economic reforms,” Treasury said.

“Secretary Bessent expressed support for Pakistan’s push toward greater economic self‑reliance and commended the government’s commitment to creating the conditions for a successful return to international capital markets,” the statement added.

A U.S. official confirmed on Wednesday that Pakistan had sought a $10 billion currency‑swap line during its meeting with Bessent, a move that, if approved, could furnish a critical lifeline to the financially strained South Asian economy.

Pakistan has been severely impacted by the Iran war, given its reliance on Gulf energy imports, remittances, and financial support from the region.

Pakistan narrowly avoided default in 2023 after securing a $3 billion IMF standby arrangement and subsequently obtaining a $7 billion Extended Fund Facility, as well as a $1.3 billion loan aimed at enhancing its resilience to climate change and natural disasters. Nevertheless, its foreign reserves continue to rely heavily on official financing, rollovers, and deposits from China and Saudi Arabia.

Islamabad’s pursuit of the bilateral currency‑stabilization fund follows its increased diplomatic engagement in efforts to de‑escalate the Iran conflict, a move that has elevated its diplomatic profile and garnered commendation from the Trump administration.

Source link