In a significant economic development, the US Export-Import Bank has approved financing of $1.25 billion to support the mining of critical minerals at Reko Diq in Pakistan.
“With a new commitment of $1.25 billion in EXIM Bank financing, the US-Pakistan partnership will drive economic growth in Balochistan,” the US Embassy said in a post on social media platform X on Wednesday.
Reko Diq is a massive, undeveloped copper and gold deposit located in Balochistan, Pakistan, which is believed to be one of the world’s largest. The project is a joint venture between Canada’s Barrick Gold (50%) and Pakistani stakeholders (50%) and aims to start production in 2028.
In a video message, Chargé d’Affaires Natalie Baker said that in the coming years, EXIM’s project financing will bring up to $2 billion “in high-quality US mining equipment and services needed to build and operate the Reko Diq mine”.
Along with creating an estimated 6,000 jobs in the US and 7,500 jobs in Balochistan, Pakistan, Baker said.
“The Reko Diq project serves as the model for mining projects that will benefit US exporters, as well as local Pakistani communities and partners by bringing employment and prosperity between both our nations.”
Baker added that the US President Trump administration has made the forging of these deals central to American diplomacy.
“We look forward to seeing further agreements between US companies and their Pakistani counterparts in the critical minerals and mining sector,” she concluded.
Last month, the US EXIM chair John Jovanovic told the Financial Times that the bank will invest $100 billion to secure US and allied supply chains for critical minerals, nuclear energy and liquefied natural gas.
The first tranche of deals will include projects in Egypt, Pakistan and Europe, Jovanovic told the newspaper.
In recent month, US-Pakistan ties have seen a significant revival, with both sides focusing on expanded economic engagement and security cooperation amid changing global dynamics.
Earlier in September, the US Strategic Metals (USSM) of the United States and Pakistan’s Frontier Works Organisation (FWO) signed a memorandum of understanding (MoU) worth $500 million to strengthen cooperation in the critical minerals sector, marking a step toward deeper economic and strategic engagement between the two countries.
Following the agreement, Pakistan successfully delivered its first batch of rare earth elements and critical minerals to USSM in the United States in October.
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