Trump Administration Greenlights $1.25 Billion US EXIM Financing for Pakistan

US Export-Import Bank Approves Funding for Reko Diq Mine in Balochistan; Decision Follows IMF $1.2 Billion Disbursement and F-16 Upgrade Notification

US Commits $1.25 Billion in Commercial Financing for Pakistan

In a significant diplomatic and commercial development, the Donald Trump administration has approved $1.25 billion in financing from the US Export-Import Bank (EXIM Bank) to support the massive Reko Diq copper-gold mining project in Pakistan’s restive Balochistan province. The announcement, made by the US Embassy in Islamabad on Wednesday, December 10, 2025, signals a clear policy pivot toward strengthening commercial engagement with Pakistan. The financing is specifically intended to facilitate the import of US mining equipment and services for the project, which is partly owned by the Canadian firm Barrick Gold.

Acting US Ambassador Natalie Baker hailed the move as a “game-changer” for economic growth in Balochistan and a “win-win” for both nations, stating the initiative is projected to create thousands of jobs in both the US and Pakistan. The approval underscores the Trump administration’s focus on securing global supply chains for critical minerals—a key strategic priority—by tapping into the vast mineral reserves of the region.

Multiple Financial Lifelines Approved

The EXIM Bank financing comes as Pakistan receives multiple critical financial boosts:

• IMF Disbursement: The International Monetary Fund (IMF) Executive Board recently approved the release of $1.2 billion to Pakistan, keeping the nation’s Extended Fund Facility program on track. The US, as the IMF’s largest shareholder, heavily influences these decisions.
• Military Hardware: Concurrently, the Trump administration notified Congress of a proposed $686 million sale to upgrade Pakistan’s fleet of F-16 fighter aircraft, underscoring the continuation of military cooperation despite long-standing concerns in New Delhi.

These financial and military agreements, taken together, represent a significant strategic alignment, alleviating pressure on Pakistan’s cash-strapped economy and signalling a renewed push for US influence in the region to counter China’s dominance, particularly the China-Pakistan Economic Corridor (CPEC).

Geopolitical Implications for India

The renewed flow of funding and hardware from the US government to Pakistan is expected to trigger a reassessment of foreign policy priorities in New Delhi. While the US-India strategic partnership remains robust, Washington’s simultaneous engagement with Islamabad—especially concerning military hardware and financial aid—has historically been a source of tension.

Indian analysts view the EXIM Bank funding for the Reko Diq project as a counter-move to China’s deep economic penetration in Pakistan, while the F-16 upgrade notification is seen as a traditional security balancing act. The combination of these approvals, particularly under the Trump administration known for its transactional foreign policy, suggests that the US views a stable, financially supported Pakistan as essential for regional stability and for the broader geopolitical competition with China. The focus now shifts to how India will calibrate its diplomatic and defence procurement strategy in response to this strategic recalibration by the Trump administration.