Major Boost for Pakistan with $1.25 Billion for Reko Diq-US EXIM to Invest $100 Billion in Critical Mineral Supply Chain
In a major development for the global minerals market, the US Export-Import Bank (US EXIM) plans to invest $100 billion to strengthen critical mineral supply chains, according to a recent report by the Financial Times (FT). This strategic move aims to reduce the West’s dependency on a limited number of suppliers and ensure a stable, secure flow of essential raw materials needed for energy transition, technology, and industrial growth.
Among the first beneficiaries of this financing initiative is Pakistan, which is set to receive a $1.25 billion loan for the Reko Diq copper-gold mine, one of the world’s largest undeveloped mining projects being jointly developed by Barrick Mining.
A Historic Opportunity for Pakistan’s Mining Sector
The inclusion of Pakistan in the first tranche of US EXIM’s global investments reflects growing international confidence in the country’s economic potential. According to US EXIM’s Reta Jo Lewis and Jovanovic, early deals will span Egypt, Pakistan, and Europe.
For Pakistan, the Reko Diq financing represents more than just a loan:
1. Strong Vote of Confidence from International Investors
The $1.25 billion commitment by US EXIM—backed by global commodity group Hartree Partners—signals trust in Pakistan’s stability, resource potential, and ability to play a key role in global mineral markets.
This level of international interest shows Pakistan’s emergence as an important player in supplying minerals needed for clean energy technologies, electric vehicles, and advanced manufacturing.
2. Strengthening Pakistan–US Economic Relations
This major investment deepens economic and strategic ties between Pakistan and the United States. As both countries explore opportunities in renewable energy, minerals, agriculture, and technology, Reko Diq serves as a landmark project that can pave the way for future bilateral cooperation.
3. Boost for Foreign Direct Investment (FDI)
Such high-profile involvement encourages other global investors, who often wait for signals from leading institutions like EXIM, World Bank, or IFC. The deal creates a ripple effect, motivating more countries and corporations to consider Pakistan as a viable and promising investment destination.
4. Transformational Economic Impact
Reko Diq is expected to generate thousands of jobs, infrastructure development, and long-term revenue. The mineral output—primarily copper and gold—is vital for clean technologies like electric vehicles, solar systems, semiconductors, and batteries.
Why This Matters for Pakistan’s Future
As the world transitions towards clean energy and advanced technology, the demand for critical minerals such as copper, lithium, rare earth elements, and cobalt is increasing rapidly. Countries that can supply these minerals will become central players in the global economy.
Pakistan’s mineral-rich regions, especially Balochistan, give it an opportunity to play a major role in this transformation — and the US EXIM funding is a major stepping stone.
This investment:
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Boosts investor confidence
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Creates global partnerships
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Enhances Pakistan’s profile in the international mining industry
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Opens doors for more large-scale investments in energy, infrastructure, and technology
Conclusion
The announcement that US EXIM will invest $100 billion globally—and $1.25 billion specifically in Pakistan’s Reko Diq project—marks a significant milestone for Pakistan’s economy. It reflects a strong vote of trust by foreign investors and shows that Pakistan is increasingly viewed as a reliable partner in the global minerals and energy supply chain.
As Pakistan continues to encourage economic reforms, improve its investment climate, and strengthen global partnerships, such developments will play a transformative role in shaping the country’s economic future and attracting further investment from around the world.