The US Export-Import (EXIM) Bank has approved $1.25 billion in financing to support the development of the Reko Diq copper and gold project in Balochistan.
The US Embassy highlighted the deal on social media platform X on Wednesday, saying the financing will strengthen the US-Pakistan partnership and “drive economic growth in Balochistan.”
Reko Diq, one of the world’s largest untapped copper and gold deposits, is a joint venture between Canada’s Barrick Gold and Pakistani stakeholders, each holding a 50 percent share. The project is expected to commence production by 2028.
In a video message, Chargé d’Affaires Natalie Baker said the EXIM Bank financing could bring up to $2 billion worth of US mining equipment and services to the project. She added that the venture is expected to create around 7,500 jobs in Balochistan and 6,000 in the United States.
“The Reko Diq project sets a precedent for mining initiatives that benefit US exporters and local communities in Pakistan, bringing employment and prosperity to both nations,” Baker said. She noted that forging such deals has been a central focus of US diplomacy.
Last month, EXIM Bank Chair John Jovanovic told the Financial Times that the bank plans to invest $100 billion to secure supply chains for critical minerals, nuclear energy, and liquefied natural gas. Projects in Pakistan, Egypt, and Europe are part of the first tranche of deals.
The move comes amid a revival of US-Pakistan ties, with both countries emphasising stronger economic engagement and security cooperation. In September, US Strategic Metals (USSM) and Pakistan’s Frontier Works Organisation (FWO) signed a $500 million memorandum of understanding to advance cooperation in the critical minerals sector. Following this, Pakistan delivered its first shipment of rare earth elements and critical minerals to USSM in October.
The Reko Diq project is widely seen as a milestone in expanding bilateral trade, strategic collaboration, and high-value investment between the United States and Pakistan.
Read next: Gold prices drop further in Pakistan
