US Exim Approves $1.25 Billion for Pakistan’s Reko Diq Critical Minerals Project

US Approves $1.25 Billion Financing for Pakistan’s Reko Diq Project, Reshaping Regional Geopolitics

The United States has deepened its strategic engagement with Pakistan by approving $1.25 billion in financing for the large-scale Reko Diq copper–gold mining project in Balochistan. The support, extended through the US Export-Import Bank, marks one of Washington’s most significant mineral-sector interventions in South Asia and signals shifting geopolitical currents in the region.

Financing Details and Strategic Purpose

The funding aims to fast-track development of Reko Diq—one of the world’s largest undeveloped copper-gold deposits. The project is expected to drive up to $2 billion in US equipment and service exports , boosting American industry while generating thousands of jobs across both countries. Early projections estimate $2.8 billion in export value during the first year of production, underscoring its commercial potential.

Geopolitical Realignment in Focus

The decision highlights a noticeable strengthening in US–Pakistan ties under President Trump’s second term. Washington views Pakistan as an increasingly important partner in its critical minerals strategy, while relations with India have cooled over unresolved trade disputes. Officials see the Reko Diq model as a prototype for future US-linked mineral extraction ventures globally.

Project Ownership and Global Interest

Canadian mining major Barrick Gold holds a 50% stake in the project, with Pakistan’s federal and Balochistan governments holding 25% each. The total cost is estimated at $7 billion . Rising demand for copper—essential for EVs, renewable technologies and AI hardware—has accelerated Pakistan’s push to operationalise the mine. Saudi Arabia’s Manara Minerals has also expressed interest in acquiring a minority stake.

Exam Oriented Facts

• US Exim Bank financing: $1.25 billion

• Deposit type: One of the world’s largest undeveloped copper–gold reserves

• Ownership split: Barrick Gold 50%, Pakistan Federal 25%, Balochistan 25%

• Expected first-year exports: $2.8 billion

Security Challenges in Balochistan

Despite economic promise, the region faces persistent insurgency and attacks on foreign-led projects. Ensuring long-term security remains essential for the uninterrupted development of Reko Diq and related investments.