The United States has approved $1.3 billion in financing for Pakistan’s Reko Diq copper and gold project in Balochistan.
The funding will cover a significant share of the project’s estimated $3.2 billion development cost and marks one of the largest foreign investments in Pakistan’s mining sector in recent years.
The support comes through the US Export Import Bank under its critical minerals framework, part of a broader $10 billion initiative known as Project Vault.
The program is designed to secure reliable global supply chains for key minerals used in modern technologies, including renewable energy systems, electric vehicles, and defense equipment. Copper and gold from Reko Diq are considered strategically important in this context.
Reko Diq is being developed in partnership with a Canadian mining company. Construction activities are already underway, and commercial production is expected to begin by 2028. Once operational, the project is likely to become one of the largest copper and gold mines in the region.
Pakistan’s mining sector currently contributes around 3.2 percent to the country’s gross domestic product. It supports more than 5,000 mines, about 50,000 small and medium enterprises, and provides jobs to nearly 300,000 workers.
Officials believe that large scale projects like Reko Diq can strengthen export earnings, attract further foreign investment, and create employment opportunities in Balochistan.
The US financing signals growing international interest in Pakistan’s mineral potential at a time when global competition for critical resources is increasing.