The United States has announced a substantial investment of USD 1.25 billion to support a major mining project in Pakistan's Balochistan province, marking a significant step in US-Pakistan economic cooperation.

The US Export-Import Bank (EXIM) approved this financing to back the development of the Reko Diq critical minerals project, a venture expected to strengthen mining activities in the region.

Natalie A. Baker, the Charge d'Affaires ad interim at the US Embassy in Islamabad, shared details of this development through a video message on X. She emphasised that the US administration prioritises such deals as an integral part of American diplomacy.

According to Baker, the EXIM financing will facilitate the procurement of up to USD 2 billion worth of high-quality US mining equipment and services necessary for constructing and operating the Reko Diq mine.

The project is set to generate significant employment opportunities on both sides. Estimates suggest approximately 6,000 jobs will be created in the United States, while Balochistan is expected to benefit from around 7,500 new jobs.

This dual impact highlights the project's potential to boost economic growth and prosperity in local Pakistani communities as well as amongst US exporters.

Baker described Reko Diq as an exemplary mining project that delivers mutual benefits. It aims to serve as a model for future ventures by fostering collaboration between US firms and their Pakistani counterparts. She underscored that these partnerships are designed to enhance employment, drive economic development, and facilitate trade ties between the two countries.

The US Embassy reiterated this sentiment in a brief statement on X, stating that the USD 1.25 billion commitment by EXIM Bank will be instrumental in driving economic growth in Balochistan. The Embassy encouraged the public to view Baker’s message, which portrayed the Reko Diq project as a “game-changer" for both US businesses and local Pakistani communities, signalling the broader impact this partnership seeks to achieve.

This latest mining agreement forms part of a wider US effort to deepen economic engagement with Pakistan. It complements earlier initiatives announced by former US President Donald Trump in July 2025, which focused on developing Pakistan’s oil reserves through a separate trade partnership.

Trump highlighted progress in selecting an oil company to lead the collaboration and indicated the potential for Pakistan to export oil to India in the future.

The oil partnership announcement came shortly after Trump imposed 25 per cent tariffs and additional penalties on India, reflecting a complex geopolitical economic strategy. Trump's remarks on social media suggested an intent to strengthen US-Pakistan economic ties while indirectly influencing regional trade dynamics involving India.

The EXIM Bank’s financing and the broader US trade initiatives represent a strategic push to cultivate stronger economic links with Pakistan. These efforts aim to leverage Pakistan’s natural resources, support local job creation, promote US exports, and foster regional cooperation amid shifting global trade and geopolitical landscapes.

Based On ANI Report