US welcomes Pakistan's reforms, backs market return

The United States has welcomed Pakistan's progress in restoring macroeconomic stability and implementing economic reforms, while expressing support for Islamabad's efforts to return to international capital markets, following talks between US Treasury Secretary Scott Bessent and Finance Minister Muhammad Aurangzeb.

According to a statement issued by the US Treasury on Wednesday, Bessent commended Pakistan's progress in advancing fiscal consolidation and acknowledged the government's efforts to implement significant economic reforms.

He stressed the importance of sustaining the reform agenda to strengthen economic resilience, promote growth and reduce reliance on external support.

"Secretary Bessent welcomed the progress Pakistan has made in restoring macroeconomic stability and advancing fiscal consolidation, recognising the government's efforts to implement significant economic reforms," the Treasury said.

The statement added that Bessent supported Pakistan's efforts to build greater economic self-reliance and praised its commitment to creating the conditions necessary for a successful return to international capital markets.

However, the Treasury statement made no reference to Pakistan's reported request for a $10 billion currency stabilisation facility, which Reuters said was raised during the meeting. A US official confirmed on Wednesday that Islamabad had sought a $10 billion bilateral currency swapline from Washington.

If approved, the facility could provide crucial support to Pakistan's foreign exchange reserves and help stabilise its economy amid continuing external financing pressures. Pakistan's economy has come under renewed strain following the Iran war, reflecting its dependence on Gulf energy imports, workers' remittances and financial support from the region.