The U.S. Export-Import (EXIM) Bank has approved $1.25 billion in financing for Pakistan’s Reko Diq mining project in Balochistan. US Chargé d’Affaires in Pakistan, Natalie Baker, said the project will create 7,500 jobs in Balochistan and 6,000 jobs in the United States, positioning Reko Diq as a landmark initiative for economic growth and bilateral trade in the mining sector.
The U.S. Export-Import (EXIM) Bank has approved $1.25 billion in financing for Pakistan’s Reko Diq mining project, a major milestone for the country’s largest copper-gold venture.
US Chargé d’Affaires in Pakistan, Natalie Baker, said the project will generate 7,500 jobs in Balochistan and 6,000 jobs in the United States, highlighting its impact on employment and economic growth.
“The Reko Diq project will serve as a model for future mining initiatives, benefiting American exporters and local communities alike,” Baker added. She noted that the U.S. remains committed to supporting partnerships that strengthen Pakistan’s mining sector and promote bilateral trade.
Financing Structure and International Support
The EXIM Bank approval clears nearly 50% of the $3.5 billion debt requirement for the Reko Diq project. Canada’s Export Development Canada (EDC) is co-financing alongside EXIM, bringing the combined US–Canada contribution to $1.4 billion. Both agencies will provide modern mining equipment and services necessary for mine construction.
The total project cost has been revised to $7.7 billion, up from the initial estimate of $6.9 billion, to account for contingencies and risk coverage. Other confirmed contributions include:
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$700 million from the International Finance Corporation (IFC)
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$300 million from the Asian Development Bank (ADB)
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Close to $300 million from Japan Bank for International Cooperation (JBIC)
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$900 million from European institutions (Euler Hermes, KfW, Sweden’s EKN)
The project follows a 50:50 debt-to-equity structure, with ownership of the Reko Diq Mining Company (RDMC) as follows:
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Barrick Gold Corporation – 50%
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Government of Pakistan – 25% (via OGDCL, PPL, GHPL)
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Government of Balochistan – 25% (including 10% free-carried and 15% fully funded stake)
Infrastructure and Economic Impact
RDMC has pledged $390 million in bridge financing to upgrade Pakistan Railways’ Main Line-2 and Main Line-3, ensuring efficient transport of mined materials to Port Qasim ahead of production, expected by 2028.
The Reko Diq project is projected to create over 75,000 jobs in Balochistan and generate nearly $35 billion annually in foreign exchange, significantly boosting Pakistan’s economy.
