The U.S. government has announced it will reassess its $1.25 billion financing package for Pakistan’s Reko Diq copper and gold project after recalculating project costs. The decision comes as part of a broader review of the financial viability of the project, which has faced delays and cost overruns in recent years. The U.S. Export-Import Bank (EXIM) is expected to provide updated funding terms based on new cost estimates.
Reko Diq, located in Pakistan’s Balochistan province, is one of the country’s largest mineral deposits. The project has been a key focus of U.S.-Pakistan economic cooperation, with the financing package initially approved in 2023. However, recent assessments have raised concerns about the project’s financial sustainability. The recalculations are expected to take several months, with officials indicating that the final decision will depend on the updated figures.
The move highlights ongoing challenges in large-scale infrastructure and mining projects in Pakistan. While the U.S. remains committed to supporting economic development in the region, the reassessment underscores the complexities of international financing in a politically and economically volatile environment. The outcome could have significant implications for both the project and U.S.-Pakistan trade relations (propakistani.pk).
