An important step in US-Pakistan economic cooperation has been taken with the announcement that the US will invest USD 1.25 billion to fund a large mining project in the province of Balochistan.
This funding was authorized by the US Export-Import Bank (EXIM) to support the development of the Reko Diq critical minerals project, which is anticipated to boost mining operations in the area.
The US Embassy in Islamabad’s Charge d’Affaires ad interim, Natalie A. Baker, provided information of this development via a video message on X. She emphasized that these agreements are a top priority for the US administration and are an essential component of US diplomacy.
According to Baker, the EXIM funding will make it easier to acquire up to USD 2 billion worth of top-notch US mining equipment and services required for building and running the Reko Diq mine.
On both sides, the project is expected to create a large number of job possibilities. The United States is predicted to gain about 6,000 new employment, whereas Balochistan is anticipated to gain about 7,500 new jobs.
The project’s potential to increase economic growth and prosperity in both local Pakistani populations and among US exporters is highlighted by this dual impact.
Reko Diq is an excellent mining project that benefits both parties, according to Baker. By encouraging cooperation between US companies and their Pakistani counterparts, it seeks to serve as a model for future endeavors. She emphasized that these collaborations are intended to boost jobs, promote economic growth, and ease commercial relations between the two nations.
In a brief statement on X, the US Embassy reaffirmed this view, saying that EXIM Bank’s USD 1.25 billion pledge will play a key role in promoting economic progress in Balochistan. The Embassy urged the public to read Baker’s statement, which described the Reko Diq initiative as a “game-changer” for local Pakistani communities as well as US companies, indicating the wider impact this cooperation aims to accomplish.
This most recent mining deal is a component of a larger US initiative to strengthen economic ties with Pakistan. In July 2025, former US President Donald Trump launched a series of efforts aimed at increasing Pakistan’s oil reserves through a separate economic alliance. These initiatives are complementary to this one.
Trump mentioned the possibility of Pakistan exporting oil to India in the future and emphasized the work made in choosing an oil company to spearhead the partnership.
The announcement of the oil collaboration followed Trump’s imposition of extra fines and a 25% tariff on India, which was part of a sophisticated geopolitical economic strategy. Trump’s comments on social media revealed a desire to improve commercial relations between the US and Pakistan while also subtly affecting the dynamics of regional commerce with India.
The finance provided by the EXIM Bank and the larger US trade initiatives are part of a calculated effort to foster closer economic ties with Pakistan. In the face of changing global commercial and geopolitical environments, these initiatives seek to take advantage of Pakistan’s natural resources, encourage regional collaboration, boost local job creation, and advance US exports.
