The United States is considering providing debt financing for Pakistan’s massive Reko Diq mining project through its Export-Import Bank (Exim Bank), according to Express Tribune. The $6.5 billion project needs roughly $3.5 billion in debt financing, and discussions with the US are underway.
The proposed loan would come with a condition: preferred creditor status for the Exim Bank. The funds would likely be used to purchase American earth-moving machinery. Key figures involved in the talks include Pakistan’s Finance Minister Muhammad Aurangzeb and US Ambassador Donald Blome.
A successful deal would be a significant development, marking the first major US investment in Pakistan in a long time. Additionally, US involvement could pave the way for further loans from other lenders, as long as Pakistan prioritizes the Exim Bank’s repayment.
Beyond potential financing, Pakistan is exploring leasing nearby Tethyan Metallogenic Belt blocks to expand the project. Currently, Reko Diq is co-owned by Barrick Gold (50%), federal government entities (25%), and Balochistan province (25%).
Pakistan has also extended an offer to Saudi Arabia for potential stake acquisition, highlighting the project’s international appeal. The Reko Diq mine, expected to operate for at least 40 years, will be built in two phases with a combined processing capacity of 80 million tons annually.