Pakistan has secured a $7 billion financial close for the Reko Diq copper mining project, strengthening economic ties with the United States. Backed by the International Finance Corporation (IFC) and US EXIM Bank, the project will boost foreign exchange earnings and drive growth. Finance Minister Muhammad Aurangzeb called it a major milestone in Pakistan’s growing cooperation with the US.
The Reko Diq mine is expected to generate export revenues equivalent to 10% of Pakistan’s current export base by 2028. This will significantly contribute to Pakistan’s economy. Aurangzeb noted that international interest from investors, including those from the US, China, and the GCC, is expected as the project expands.
Read more: US invests $1.25bn in Pakistan’s Reko Diq
Aurangzeb also emphasized Pakistan’s balanced approach in maintaining strong ties with both the US and China. While China remains a key partner through the China-Pakistan Economic Corridor (CPEC), Pakistan is committed to deepening its relationship with the US, especially in the fields of mining and technology.
The finance minister addressed the economic impact of climate change, pointing to the devastating 2022 floods, which caused $30 billion in losses. He mentioned that climate-related disasters are expected to reduce Pakistan’s GDP growth by half a percentage point this year, underscoring the need for better climate preparedness.
Read more: Reko Diq: $7bn Phase 1 fully financed, first copper exports due 2029
Finally, Aurangzeb stressed the importance of external financing for Pakistan’s climate resilience efforts. He highlighted the country’s partnership with the World Bank Group, which allocates significant funds for climate adaptation. While domestic resources will be used for relief, global partnerships remain essential for Pakistan’s long-term recovery and growth.