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– Vandit P
Pakistan has requested a $10bn bilateral Exchange Stabilization Support Facility from the US, with a maturity of up to five years. The request follows Pakistan’s role in brokering talks over the Iran war, which analysts believe has lifted its diplomatic standing and fueled expectations of economic gains from Washington. The facility is set to bolster reserves, ease pressure on their currency, and reduce reliance on multilateral financing as Pakistan continues tighter fiscal and monetary policy under its IMF program. Pakistan remains under a $7bn IMF Extended Fund Facility after narrowly avoiding default in 2023 via a $3bn standby deal, plus a separate $1.3bn climate resilience loan. Its reserves still depend on rollovers and deposits from China and Saudi Arabia. Pakistan has also pursued economic ties with the Trump administration, including a stablecoin agreement, and $1.25bn in Export-Import Bank financing for the Reko Diq mining project.
Its 7.375% 2031s were stable at 99.4, yielding 7.9%
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