US Announces Major Backing for Reko Diq
The United States will invest $1.25 billion in the Reko Diq copper-and-gold project in Balochistan. Natalie Baker, the US Chargé d’Affaires in Islamabad, shared the announcement in a video message on X. She explained that the US Export–Import Bank (EXIM Bank) will finance the project’s development and operational needs.
Reko Diq is one of the world’s largest undeveloped copper and gold deposits. It sits in a region that needs long-term investment, and the project now carries significant economic expectations for Pakistan.
Stronger Partnership in Critical Minerals
Baker said the initiative aims to strengthen cooperation in mining and critical minerals. She added that the project will rely on $2 billion worth of US mining equipment and services. This support will help build and run the mine with modern and efficient tools.
Moreover, the US sees critical minerals as central to global technology supply chains. These resources drive industries such as electric vehicles, solar energy and advanced manufacturing. Therefore, Washington wants to diversify supply routes and reduce dependence on a single source.
Thousands of Jobs in Both Countries
Baker noted that the project will create about 6,000 jobs in the United States and 7,500 jobs in Balochistan. She stressed that both countries will benefit from higher employment and stronger industry links.
Furthermore, Balochistan stands to gain from new opportunities. The province faces high unemployment and limited industrial activity. Thus, sustained hiring could support local families and increase regional stability.
A Boost for US–Pakistan Relations
According to Baker, similar agreements gained momentum during the Trump administration. She also said American companies want to expand their work in Pakistan’s mineral sector.
For analysts, the investment signals a cautious improvement in bilateral economic ties. Both countries have dealt with difficult phases, but they continue to cooperate on trade and development. In addition, Washington now views Pakistan’s mineral potential as a valuable part of global supply-chain planning. Pakistan, meanwhile, seeks partners who can offer technology, financing and responsible mining practices.
Economic Impact on Balochistan
Economists believe the investment can support Balochistan’s struggling economy. The province faces weak infrastructure and low private investment. Yet the Reko Diq project can encourage new roads, services and business activity.
The project moved slowly for years due to legal disputes. However, the government resolved major issues and worked with Barrick Gold, the mine’s operator, to restart development. With fresh financing, construction may progress faster and build confidence among foreign investors.
Moreover, mining activity often creates wider economic ripple effects. Local companies can supply goods, while communities can gain from social and development programs linked to the project.
A Strategic Opportunity for Pakistan
Reko Diq has long been viewed as Pakistan’s most valuable undeveloped mineral asset. Experts estimate that the mine could produce copper and gold for decades. Therefore, the new US investment offers a chance to modernize the mining sector with global environmental and safety standards.
If the project advances smoothly, it could become a leading example of cooperation between the United States and Pakistan. It may also serve as a long-term economic anchor for Balochistan and a model for future resource development.
