Pakistan is expecting a response from Washington within a couple of months on its request for a $10 billion bilateral stabilisation facility, as the country seeks to capitalise on improved ties with the Trump administration. The engagement with the US on the facility has been "constructive," Adviser to the Finance Minister Khurram Schehzad told Bloomberg on Tuesday.

"The proposed US stabilisation facility would also serve as a potential backstop and confidence signal, supporting market access and helping crowd in private capital." Pakistan had made a request to the US Treasury Secretary Scott Bessent for a Bilateral Exchange Stabilisation Support Facility with maturity of up to five years. Last week, Finance Minister Muhammad Aurangzeb confirmed the development, saying that the proposed arrangement was intended to signal currency and foreign exchange stability rather than serve as a conventional loan or credit line.

He added that the request was currently with the US Treasury Department, and that progress was expected by September - if approved, it could provide a lifeline for the cash-strapped South Asian economy. The request follows diplomatic efforts in which Prime Minister Shehbaz Sharif and Chief of Defence Forces and Chief of the Army Staff Field Marshal Asim Munir have played prominent roles surrounding the Middle East conflict, with Trump describing Pakistan's top military leader as his "favourite field marshal."

Earlier this week, Moody's Ratings upgraded Pakistan's sovereign credit rating, citing a stronger external position, better fiscal metrics and lower domestic financing costs. The government remains optimistic that continuous high-level diplomatic and economic engagement will yield positive outcomes for the national economy in the near term.