Threat to Balochistan’s treasury! Trump and Shahbaz collude, US to invest $1.3 billion

Islamabad/Washington (The Uttam Hindu): The United States has announced an investment of around $1.3 billion in Pakistan’s Balochistan gold and copper mining project, raising strategic and security concerns in the region. The investment will be made in the Reko Diq project, located near the Pakistan–Iran border, which has an estimated total value of about $7 billion and is expected to begin production by the end of 2028. The project is being developed jointly by Canada-based Barrick Mining Corporation and Pakistani authorities, with funding routed through the United States Export–Import Bank (EXIM Bank).

Barrick holds a 50 percent stake in the project, while the remaining 50 percent is split equally between three federal government-owned companies and the Balochistan provincial government. Despite the scale of investment, security remains a major concern, as Balochistan has witnessed repeated attacks by separatist and jihadist groups, making protection of the mining site a significant challenge. In addition, Pakistan will need to upgrade railway infrastructure to transport copper concentrate to Karachi for onward processing abroad.

According to a Reuters report, international lenders including the International Finance Corporation (IFC) and the Asian Development Bank (ADB) are working on a financing package exceeding $2.6 billion for the project. The Reko Diq initiative is seen as strategically crucial for Pakistan, with Islamabad viewing it as a pillar of its mineral development strategy, while Barrick considers it one of its largest long-term ventures.

Prime Minister Shehbaz Sharif’s government has welcomed the US investment, describing it as a vote of confidence in Pakistan’s mining sector and broader economic reforms. Authorities expect the project to generate billions of dollars in revenue over its lifetime and contribute significantly to the country’s economic recovery.