In a major boost to bilateral economic cooperation, the U.S. Export-Import Bank has approved financing worth $1.25 billion to support the development and mining of critical minerals at the Reko Diq project in Pakistan’s Balochistan province, marking one of the most significant recent investments in Pakistan’s mining sector.
The development was confirmed by the U.S. Embassy in Pakistan through a statement shared on the social media platform X, where it said that the new financing commitment would help drive economic growth in Balochistan and further strengthen the strategic partnership between the United States and Pakistan. The project is expected to play a key role in unlocking Pakistan’s vast mineral potential while integrating the country more deeply into global critical mineral supply chains.
Reko Diq is considered one of the world’s largest undeveloped copper and gold deposits and is located in the remote regions of Balochistan. The project is structured as a joint venture, with 50% ownership held by Barrick Gold and the remaining 50% shared by Pakistani federal and provincial stakeholders. Current development plans aim to commence commercial production by 2028, positioning the project as a long-term pillar of Pakistan’s mineral and export economy.
In a video message, Chargé d’Affaires Natalie Baker stated that over the coming years, financing from the U.S. Export-Import Bank could facilitate up to $2 billion in high-quality US mining equipment and services required to construct and operate the Reko Diq mine. She added that the project is expected to create approximately 6,000 jobs in the United States and 7,500 jobs in Pakistan, particularly in Balochistan, strengthening industrial capacity and local livelihoods.
According to Baker, the Reko Diq project is intended to serve as a model for future international mining partnerships, demonstrating how large-scale resource projects can benefit US exporters while bringing employment, skills development, and long-term prosperity to local communities in Pakistan. She also noted that the US President Donald Trump administration has placed a strong emphasis on forging such economic and strategic deals as part of its broader diplomatic agenda.
Additional momentum has been building around critical minerals cooperation between the two countries. Last month, the chairman of the U.S. Export-Import Bank, John Jovanovic, said in an interview with the Financial Times that the bank plans to invest up to $100 billion to secure supply chains for critical minerals, nuclear energy, and liquefied natural gas, with Pakistan among the early recipients of that strategy.
Earlier this year, U.S. Strategic Metals and Pakistan’s Frontier Works Organisation signed a $500 million memorandum of understanding to enhance cooperation in critical minerals. Following this agreement, Pakistan successfully delivered its first batch of rare earth elements and critical minerals to its US counterpart in October, signaling a deepening of economic and strategic engagement between the two nations.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.