US President Donald Trump‘s administration has committed $1.25 billion in financing from the US Export-Import Bank (Exim) to support the Reko Diq mining project in Pakistan’s Balochistan province, targeting the region’s vast critical minerals reserves.
Acting US Ambassador Natalie Baker announced the approval on Wednesday describing it as a “win-win” for both nations, with the funding set to import up to $2 billion in US mining equipment and services.
With a new commitment of $1.25 billion in EXIM Bank financing, the U.S.-Pakistan partnership will drive economic growth in Balochistan. Watch Chargé d’Affaires Natalie Baker’s message to hear how this financing will be a game-changer for U.S. businesses and local Pakistani… pic.twitter.com/8EklYNLQpX
— U.S. Embassy Islamabad (@usembislamabad) December 10, 2025
‘Game changer for Balochistan’s economic growth’
The US Embassy in Islamabad hailed the deal on X as a “game-changer” for economic growth in Balochistan, amid heightened global competition for critical minerals.
This initiative is projected to create 6,000 jobs in the US and 7,500 in Balochistan while unlocking one of the world’s largest undeveloped copper and gold deposits.
Reko Diq, owned 50% by Canadian firm Barrick Gold and 25% each by Pakistan’s federal and Balochistan governments, carries a total development cost of around $7 billion and aims for production by 2028.
Once operational, the project could generate $2.8 billion in export revenue in its first year alone, bolstering Pakistan’s push to tap untapped minerals amid global demand for copper in electric vehicles, renewable energy, and AI hardware.
US-Pak ties to strengthen due to project?
In Trump’s second term, the US-Pakistan relationship has improved exponentially. Trump has joined hands with Pakistan for joint extraction of natural resources and made the country central to his policy in Asia. Trump held high-level meetings with Sharif, Munir in September, which came months after India’s Operation Sindoor.
The Trump administration views this project as a “model” for future mining ventures, fostering US-Pakistani partnerships in critical minerals and benefiting local communities. Saudi Arabia’s Manara Minerals has also signalled interest in a 15% stake, adding to the project’s momentum, according to Arab News.
Why is Balochistan still underdeveloped?
Despite being rich in natural resources, Balochistan’s economic underdevelopment has been fuelled by decades-long self-determination movement led by groups like the Balochistan Liberation Army (BLA).
Frequent attacks on state institutions, personnel, and foreign projects, particularly targeting Chinese interests, have long stalled initiatives , raising security risks for Reko Diq’s advancement.