US commits $1.25B for economic development in Balochistan

The United States has announced a financial commitment of $1.25 billion through the U.S. Export-Import (EXIM) Bank to accelerate economic development and investment opportunities in Pakistan, particularly in the province of Balochistan.

U.S. Embassy Islamabad’s Chargé d’Affaires, Natalie Baker emphasized that the financing package will serve as a “game-changer” for both U.S. businesses and local communities.

According to the U.S. Mission, the EXIM Bank financing facility will support large-scale American commercial participation in infrastructure, energy, and industrial projects across Balochistan.

The initiative is expected to create new employment opportunities, strengthen supply chains, and open doors for long-term public-private partnerships in one of Pakistan’s least developed yet strategically important regions.

Baker noted that the investment reflects Washington’s continued commitment to deepening bilateral economic cooperation and supporting Pakistan’s sustainable growth.

She highlighted that increased U.S. private-sector involvement will not only enhance regional connectivity and energy security but also bring modern technology, standards, and expertise to local industries.

The EXIM Bank financing represents one of the most significant economic steps taken in recent years to strengthen commercial ties and promote inclusive development in Balochistan, the mission’s statement added.

U.S. officials said the financing framework will facilitate American companies in exporting goods and services to Pakistan while enabling local communities to benefit from improved infrastructure, job creation, and enhanced economic prospects.

The initiative is part of the broader U.S.-Pakistan “Green Alliance” and economic cooperation agenda, which focuses on expanding clean energy, climate resilience, and sustainable development.

The U.S. EXIM Bank is also one of the six global investors in the Reko Diq copper and gold mining project in Balochistan.

The deal for a $3.5 billion financing agreement – one of Pakistan’s largest-ever foreign investment initiatives – was finalized in October.

Under the implementation plan, the first loan tranche could be received within two months. Of the $4.2 billion in total project responsibility, the largest share falls to Barrick Gold, the Government of Balochistan, and state-owned enterprises, including the Oil and Gas Development Company Limited and Pakistan Petroleum Limited.