With eyes on Balochistan’s critical minerals, US commits to $1.25 bn Pakistan Exim Bank financing

With eyes on Pakistan’s critical minerals, the Donald Trump administration of the United States on Wednesday announced $1.25 billion in funding for the Reko Diq mining project in the restive Balochistan province.

In a statement, Acting US Ambassador Natalie Baker announced that the US Export-Import Bank (Exim) has approved financing of $1.25 billion to support the mining of critical minerals at the Reco Diq project. She dubbed it as a win-win arrangement for both the countries.

“In the coming years, Exim’s project financing will bring in up to $2 billion in high quality US mining equipment and services needed to build and operate the Reco Diq mine along with creating an estimated 6,000 jobs in the US and 7,500 jobs in Baluchistan, Pakistan,” said Baker.

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The Reco Diq mine is considered to potentially have one of the world’s largest undeveloped copper and gold deposits.

Once operational, the Reco Dig project is expected to generate $2.8 billion in export potential in the first year, according to Arab News.

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

In Trump’s second term, the US-Pakistan relationship has improved exponentially. He has joined hands with Pakistan for joint extraction of natural resources and made the country central to his policy in Asia. At the same time, he has plunged the relationship with India to the lowest point in decades.

Trump administration looks at Reco Diq project as ‘model’

The Trump administration wants to develop the Reco Diq project as a “model for mining projects” that will benefit US exporters as well as local Pakistani communities and partners, according to Baker.

“We look forward to seeing further agreements between US companies and their Pakistani counterparts in the critical minerals and mining sector,” said Baker.

The Reco Diq financing has been described as one of the largest US partnerships in Pakistan’s minerals sector, according to Arab News.

While the Trump administration has announced the financing, the project itself is owned by Canadian mining giant Barrick Gold (50 per cent) along with the federal and provincial governments (25 per cent each). The total cost of the project is around $7 billion.

The Reco Diq project is central to Pakistan’s effort to expand exports, attract foreign investment, and open the country’s largely untapped critical minerals reserves, according to Arab News.

Pakistan has pushed for the project’s operationalisation at a time when copper’s demand is high across the world in several sectors, such as electric vehicles (EVs), renewable energy products, and artificial intelligence (AI) hardware.

Saudi Arabia’s Manara Minerals has also expressed intent to acquire a 15 per cent stake in the project, as per Arab News.

Despite Balochistan’s abundance in natural resources, the region remains one of the least developed in Pakistan because of the decadeslong self-determination movement in the province. Groups like the Balochistan Liberation Army (BLA) oppose the Pakistani regime’s control and remain in conflict with it.

Over the years, there have been frequent attacks on not just Pakistani state institutions and personnel in the province but also on foreign nationals and projects — most notably Chinese personnel. Such security concerns have meant that projects have not taken off over the years.