KARACHI: Finance Minister Muhammad Aurangzeb has said the United States is firmly re-establishing itself as a key economic partner for Pakistan, underscored by the $7 billion financial close of the Reko Diq copper and gold project—backed by the International Finance Corporation and the US EXIM Bank.
Speaking at a panel discussion in Riyadh during the Global Development Finance Conference – Momentum 2025, Aurangzeb said economic engagement with Washington is expanding across minerals, mining, and next-generation technologies including AI, blockchain, and digital infrastructure. The session, “Climate Adaptation and Resilience: How do we secure the capital we need?” was attended by senior finance officials from Jordan, Tajikistan and the West African Development Bank.
Calling Reko Diq a “transformative development,” Aurangzeb said the project would reshape Pakistan’s economic outlook. The mine is expected to generate export earnings equivalent to 10% of Pakistan’s current export base in its first commercial year in 2028. He added that strong investor interest is anticipated from the US, China, GCC countries and others as the project progresses.
Commenting on global geopolitical competition, the minister said Pakistan follows an “and-and” strategy, maintaining deep ties with both the US and China. He reaffirmed China’s long-standing role, especially through CPEC, whose second phase aims to shift toward business-to-business commercial cooperation.
Aurangzeb also highlighted the rising economic toll of climate change, citing the $30 billion losses from the 2022 floods and ongoing flooding this year. Pakistan expects to lose around half a percentage point of GDP growth due to climate impacts, he noted. While recent macroeconomic stability has created some fiscal and external buffers, large-scale rehabilitation and reconstruction will require significant international financing.
He pointed to the deployment of an AI-enabled early warning system at the National Emergency Centre for monthly climate forecasting, but stressed that domestic resources remain insufficient to meet the scale of adaptation needs. Pakistan’s 10-year Country Partnership Framework with the World Bank—worth $20 billion, with one-third dedicated to climate resilience and decarbonisation—illustrates growing multilateral support, he said.
Aurangzeb criticised global climate finance channels, including the Green Climate Fund and the Loss and Damage Fund, for their slow, bureaucratic procedures. By contrast, he welcomed timely flows through other mechanisms, noting Pakistan recently received the first $200 million tranche from the IMF’s Climate Resilience Fund.
The minister said Pakistan will continue allocating domestic fiscal resources to climate adaptation but emphasised that sustained external financing from development partners and international capital markets remains indispensable.
