Islamabad – A huge financial transaction has solidified the increasing economic alliance between the United States and Pakistan. The US Export-Import (EXIM) Bank officially approved $1.25 billion in financing for the massive Reko Diq copper and gold mine project in Balochistan.
The news was announced by the US Embassy, which posted on X (formerly Twitter) that the commitment “will drive economic growth in Balochistan.”
Reko Diq is not a mine; it is one of the largest undeveloped copper and gold reserves in the world. It is a 50:50 joint venture between the government stakeholders of Pakistan and Barrick Gold of Canada and is expected to start production in 2028.
US Charge d’Affaires Natalie Baker noted that the EXIM financing is specifically aimed at facilitating up to $2 billion of high-quality US mining equipment and services required to construct and operate the project.
A Win-Win for Jobs
In both countries, the deal is a big employment generator, with 7,500 direct employment opportunities to be generated in Balochistan, Pakistan, offering a big economic boost to the area. In addition, 6,000 jobs will be facilitated in the United States by the production and export of the mining gear required.
Baker praised the Reko Diq project as a “model for mining projects” that benefits both US exporters and local Pakistani communities by bringing employment and prosperity. She further indicated that the promotion of such economic agreements has been a central element of American diplomacy.
Securing Critical Mineral Supply Chains
The partnership is an extension of a broader US policy aimed at securing global supply chains for essential minerals.
Recently, EXIM Bank Chair John Jovanovic announced that the bank was planning to invest 100 billion dollars in boosting the US and allied supply chains of critical minerals, nuclear energy, and liquefied natural gas.
Reko Diq financing is based on the recent successful economic partnerships. Earlier this fall, the US Strategic Metals (USSM) and the Frontier Works Organization (FWO) of Pakistan signed a $500 million contract. This cooperation quickly paid off when Pakistan successfully delivered its first batch of rare earth elements and critical minerals to USSM in the US in October.
