The United States (US) has approved USD 1.3 billion in financing for Pakistan’s Reko Diq copper and gold project as part of its expanding support for global critical mineral supply chains. The decision was announced during the 2026 Critical Minerals Ministerial hosted in Washington on February 4.
The financing approved through the Export-Import Bank of the United States was highlighted as the United States signed 11 new bilateral critical minerals framework and memorandums of understanding with partners, countries, and completed negotiations with 17 others. Secretary of State Marco Rubio also announced the launch of the forum on resource geostrategic engagement, FORGE, which will succeed the Mineral Security Partnership and will be chaired by the Republic of Korea through June.
The ministerial had brought together the 54 countries from 54 countries and European commissions, including 43 foreign and other ministers, to discuss securing and diversifying global supply chains for critical minerals and rare earths. Delegations included Pakistan, Saudi Arabia, UAE, the United Kingdom, the European Union, countries from Africa, Asia, and the Americas. Pakistan is currently working on the Reko Diq project in partnership with the Canadian company Barrack. It requires capital injection of rupees 3.2 billion of which Washington has announced $1.3 billion.
Construction has already commenced at the mining site and the commercial production is expected to begin in 2028. Pakistan has a huge potential for its mineral resources, however, the mineral sector currently contributes the underdeveloped mineral sector of Pakistan currently contributes around 3.2% to the gross domestic product with exports accounting for just 0.1% of the world’s total.
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However, with increasing explorations, foreign investments and infrastructure improvement, the industry is set to achieve significant expansion and growth. Pakistan’s has a landscape which covers an outcrop area of 600,000 square kilometers. Pakistan currently possesses, Pakistan currently has 92 known minerals, 54 of which are commercially exploited. Pakistan produces an estimated 68.52 million metric tons of minerals annually.
The sector supports over 5,000 operational mines and 50,000 small and medium scale enterprises, providing direct employment to 300,000 workers. According to the fact sheet related to the critical minerals portfolio 2026, in a statement, the U.S. embassy said that President Trump had announced a project called a landmark initiative led by the Chamber of the Export-Import Bank of the United States, which marks an unprecedented step in the U.S. industrial policy of establishing a domestic strategic reserve for critical minerals.
