The US Export-Import (EXIM) Bank has approved major financing for a mining project in Pakistan. It will provide $1.25 billion to help mine critical minerals at the Reko Diq site in Balochistan. This move marks a significant step in US-Pakistan economic relations.
The US Embassy in Pakistan shared the news on Wednesday. A social media post stated the partnership will drive economic growth in Balochistan. It highlights the growing cooperation between the two nations.
Reko Diq is a very large copper and gold deposit. It is located in the Balochistan province of Pakistan. Many believe it is one of the biggest undeveloped deposits in the world. The project is a joint venture. Canada’s Barrick Gold holds a 50% share. Pakistani stakeholders own the other 50%. Production at the mine is expected to begin in 2028.
Chargé d’Affaires Natalie Baker discussed the project’s impact. In a video message, she explained that the financing will bring in more investment. Up to $2 billion in US mining equipment and services will be used. This equipment is needed to build and run the mine.
The project is also expected to create many jobs. Baker noted it will generate about 6,000 jobs in the US. It will also create around 7,500 jobs in Balochistan. She called the Reko Diq project a model for future mining ventures. It benefits US exporters and local Pakistani communities. This brings employment and prosperity to both countries.
Baker added that such deals are central to American diplomacy. She expressed hope for more agreements between US and Pakistani companies. The focus will remain on the critical minerals and mining sector.
This funding is part of a larger US strategy. Last month, EXIM chair John Jovanovic told the Financial Times about a new plan. The bank will invest $100 billion to secure supply chains for the US and its allies. These supply chains involve critical minerals, nuclear energy, and natural gas. Initial deals include projects in Pakistan, Egypt, and Europe.
Relations between the United States and Pakistan have improved recently. Both countries are focusing on stronger economic ties and security cooperation. This is happening amid shifts in global dynamics. In September, another agreement was signed. US Strategic Metals (USSM) and Pakistan’s Frontier Works Organisation (FWO) agreed to a $500 million memorandum of understanding. This aims to boost cooperation in the critical minerals sector.
The recent approval of $1.25 billion in financing for Pakistan’s Reko Diq project by the US EXIM adds a major boost to the mining sector. For insights on how regulators are preparing for this, read CCP advises gold market regulation before the Reko Diq project.
