Pakistan has secured one of its most noteworthy foreign investment commitments in years, after the US Export-Import (EXIM) Bank okayed $1.25 billion in financing to support the development of the Reko Diq copper-gold project in Balochistan.
This move is not only a concrete step that changes the tone around Pakistan’s mineral wealth but also positions the US as a central partner in a mine widely regarded as one of the world’s largest untapped deposits of copper and gold.
View this post on Instagram
“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 Reko Diq mine. The Trump administration has made the forging of deals exactly like this one central to American diplomacy. We look forward to seeing further agreements between US companies and their Pakistani counterparts in the critical minerals and mining sector,” Acting US ambassador to Pakistan Natalie Baker announced in a video post. And that is just one part of the story.
For someone who can read between the lines, it is not hard to understand that this investment is set to become a practical point of cooperation that brings Pakistan and the US back into a working economic alignment. The EXIM Bank’s approval signals that Pakistan has finally crossed the credibility threshold that global capital demands. In other words, it means that now someone with both money and muscle has decided that Pakistan is worth the bet.
Located in Chagai district near the borders with Iran and Afghanistan, Reko Diq has long been considered the backbone of Pakistan’s mineral future. Geological surveys place the site among the top five largest undeveloped copper-gold reserves in the world, with decades of extraction potential.
The project has already added 13 million ounces to Barrick's gold reserves last year. It is expected to produce 200,000 metric tons of copper a year in its first phase, doubling after expansion, with projected free cash flow of more than $70 billion over 37 years. This means that over the life of the mine, estimated at 80 to 100 years, the province alone will receive substantial royalties, dividends, and social-sector investments.
Under the financing arrangement, the US will supply heavy mining equipment, services, and technical expertise to support the project’s buildout over the coming years. The investment is expected to create an estimated 6,000 jobs in the US and 7,500 jobs in Pakistan, with indirect employment swelling to 75,000 across supply chains, logistics, and ancillary industries. These numbers carry significant weight. And the best part about this agreement is that it works for both sides.
For Pakistan, the project is a step toward self-reliance. Balochistan’s mineral wealth will finally translate into provincial revenue, skills training, and long-term development. It gives the province the kind of steady income that can support education, infrastructure, and energy expansion without leaning on external aid.
By investing in Reko Diq, the US strengthens its own industrial security while exporting technology, equipment, and operational expertise
At the same time, the project ties America’s industrial ecosystem directly to Balochistan and secures much-needed access to essential minerals at a time when global supply chains are tightening. Copper is central to modern industries, and Washington wants stable partners instead of overdependence on a few dominant suppliers. By investing in Reko Diq, the US strengthens its own industrial security while exporting technology, equipment, and operational expertise.
Of course, entities do not place a long-tenor, high-exposure facility into a country unless they believe its regulatory architecture, political stability, and institutional discipline have improved to a functional level. This is the part many commentators miss.
When a US federal institution enters a high-value extractive project, it de-risks the entire jurisdiction and reduces perceived sovereign risk
For the first time in years, Pakistan has delivered a project structure that meets international compliance standards, offers predictable returns, and distributes equity in a way global investors can defend. That alone shifts the investment climate. When a US federal institution enters a high-value extractive project, it de-risks the entire jurisdiction and reduces perceived sovereign risk. It also attracts Western partners, who previously avoided Pakistan due to arbitration histories and contractual uncertainty.
In short, Reko Diq now becomes a reference case and is set to change Pakistan’s investment profile for the next decade or so. The project builds on decades of successful operations at the nearby Saindak copper-gold mine, which has produced over 290,000 tonnes of blister copper and approximately 12 tonnes of gold since commercial production began almost two decades ago. By comparison, Reko Diq is on an entirely different scale. Its current measured and indicated resources alone stand at roughly 5.9 billion tonnes of ore containing more than 24 million tonnes of copper and 41 million ounces of gold.
Considering that extractive capital moves in clusters, once the first mover enters, competitors and suppliers are expected to follow. Be it copper, gold, lithium, or REEs, the entire mineral belt from Chagai to Kohistan will become bankable in the eyes of lenders. And that makes the future of Pakistan extremely promising. Soon the country will emerge as a competitive mineral hub, drawing in Australian, Canadian, and Gulf investment.
The combination of a long-term commercial partner in the form of the US, a provincial ownership guarantee, and globally competitive financing strengthens the project’s viability. Pakistan has been handed a rare entry point as the world reorders its supply chains. The deal is indeed a breakthrough, and gives the country a stable path forward. This is the beginning of a far more serious mineral economy, and the country is stepping into it with a partner that can actually move the needle.
