Officials said the funding formed part of Trump administration initiatives to boost infrastructure and investment, strengthening economic ties in South Asia
By Mehrab Shah Afridi
ISLAMABAD: The United States has approved a $130 million loan to support Pakistan’s landmark Reko Diq project, officials confirmed on Thursday, in a move hailed by industry experts as a potential turning point for the country’s mining and industrial sectors.
The announcement followed a high-level meeting in Washington, chaired by the US Secretary of State, where senior officials and delegates from both countries discussed strategies to secure the supply of critical minerals. The discussions reportedly focused on creating new supply chains, strengthening transport and logistics networks, and ensuring that vital resources could be delivered safely and efficiently.
Under the terms of the agreement, the loan will be channeled through the US Export-Import Bank. Officials described the funding as part of a broader framework of infrastructure and investment initiatives promoted by President Donald Trump’s administration, aimed at fostering economic partnerships in South Asia.
While the precise conditions of the loan were not disclosed, analysts suggested that the financing could significantly accelerate the Reko Diq project, which has long been considered one of Pakistan’s most promising industrial ventures. The Reko Diq project, located in the mineral-rich province of Balochistan, has the potential to transform Pakistan’s mining sector.
Experts said it could create thousands of jobs, bolster domestic industries, and increase the country’s capacity to supply minerals to both local and international markets. “This project is a game-changer for Pakistan,” one government official said, noting that the funding could help overcome longstanding financial and logistical challenges that have delayed its progress.
Observers also noted that the agreement highlights the United States’ growing engagement in strategic mineral projects in the region. By supporting initiatives like Reko Diq, Washington appears to be seeking not only economic benefits but also more reliable supply chains for critical resources amid rising global demand.
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