The United States has approved $1.3 billion in financing for Pakistan’s Reko Diq copper and gold project, marking a major step forward for one of the country’s largest mining ventures.
The funding will cover a significant share of the project’s total estimated investment of $3.2 billion and reflects growing international interest in Pakistan’s mineral resources.
The support comes through the US Export Import Bank under its critical minerals framework, part of a wider $10 billion program known as Project Vault.
The initiative focuses on securing reliable global supply chains for key minerals that are essential for clean energy, electric vehicles, electronics, and defense technologies. Copper, in particular, is considered vital for energy transition and infrastructure development worldwide.
Reko Diq, located in Balochistan, is being developed in partnership with a Canadian mining company. Construction work is currently underway, and commercial production is expected to begin by 2028.
Once operational, the mine is projected to become one of the largest copper and gold projects in the region, with potential to significantly boost Pakistan’s export earnings.
Pakistan’s mining sector currently contributes around 3.2 percent to the national GDP. It supports more than 5,000 mines, about 50,000 small and medium enterprises, and provides employment to nearly 300,000 workers.
Officials believe the Reko Diq project will create additional jobs, promote local development in Balochistan, and attract further foreign investment.
The US commitment highlights the strategic importance of critical minerals in today’s global economy and signals stronger economic cooperation between the two countries.
