Pakistan Seeks US EXIM Financing For PIA, Reko Diq And Refineries
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✧ GENERATE BRIEFING
Pakistan is actively expanding economic and strategic engagement with the United States Export-Import Bank (US EXIM) to secure high-value project financing aimed at modernizing domestic infrastructure, upgrading national energy assets, and supporting major procurement initiatives including commercial aircraft acquisitions for Pakistan International Airlines (PIA), crucial refinery upgrades, and the world-class Reko Diq mining venture. Unlike conventional multilateral lenders providing unrestricted development loans, US EXIM operates as the official US export credit agency, meaning its financing, loan guarantees, and risk insurance are tied directly to the purchase of American manufactured goods, equipment, and services. This institutional mandate positions US-supplied technology and industrial machinery as prime candidates for EXIM-backed financial structures.The ongoing diplomatic and financial dialogue aligns with broader efforts to deepen bilateral economic ties. Deputy Prime Minister Ishaq Dar previously outlined a national target to elevate annual bilateral trade with the United States to $20 billion over the next five years, building upon previous fiscal baselines of approximately $9.4 billion.
Pakistan is increasingly engaging with the US Export-Import Bank (EXIM) as it looks for financing for major projects, including PIA’s planned Boeing aircraft purchases, refinery upgrades and the Reko Diq mining project. The engagement is part of a broader effort to deepen Pakistan-US economic ties and attract US technology, equipment and financing.
The US EXIM Bank is the official export credit agency of the United States. It provides financing, loan guarantees and insurance to support US exports when private-sector lenders are unable or unwilling to provide sufficient financing. Its mandate is ultimately focused on supporting American exports and jobs.
This means US EXIM does not function like a conventional development bank that simply provides unrestricted loans to foreign governments. Instead, its financing is generally connected to the purchase of US goods, equipment and services. For Pakistan, this makes Boeing aircraft and other US-supplied equipment potential candidates for EXIM-backed financing.
Strategic Bilateral Goals and Bilateral Trade
Pakistan’s current discussions also form part of a wider push to expand bilateral trade with the United States. Deputy Prime Minister Ishaq Dar said in July that Pakistan aimed to increase annual trade with the US to $20 billion over five years, compared with around $9.4 billion in the previous fiscal year. Islamabad has also been seeking greater US investment in technology, minerals and energy.
Sectoral Projects and Aircraft Procurement
One major area under discussion is Pakistan International Airlines (PIA). Pakistan has sought potential EXIM financing for Boeing aircraft, including 787 Dreamliners, as well as aircraft engines and possible pre-delivery payments. The government has also discussed obtaining spare parts to bring grounded Boeing 777 aircraft back into service.
Importantly, the government has clarified that it is not directly purchasing the aircraft or providing a taxpayer-funded loan. Finance Ministry adviser Khurram Schehzad said the government was helping PIA access financing and suppliers, while EXIM could assess the creditworthiness of the airline or its lessee and potentially structure financing against the aircraft.
Reko Diq is currently the clearest example of US EXIM financing for Pakistan. The bank has committed $1.25 billion in financing for the copper-and-gold mining project in Balochistan. The financing is part of a broader US strategy to strengthen supply chains for critical minerals.
Refinery modernisation is another potential area, although financing for upgrades remains under discussion rather than being a completed EXIM commitment. Pakistan is therefore seeking to develop a wider pipeline of projects that could connect Pakistani businesses and infrastructure projects with US suppliers and financing.
The US EXIM discussions should also be distinguished from Pakistan’s own Export-Import Bank of Pakistan, which is a separate institution owned by the Government of Pakistan and focuses on supporting Pakistani exports and import-substitution projects.
