Pakistan Seeks US EXIM Bank Financing for Major Projects
Pakistan is exploring new financing options through the US Export-Import Bank (EXIM) to support major projects, including aircraft purchases, refinery upgrades, and the Reko Diq mining venture. The US EXIM Bank, an official export credit agency, provides financing, loan guarantees, and insurance to facilitate American exports. For Pakistan, this presents an opportunity to secure funding for projects involving US goods, such as Boeing aircraft for Pakistan International Airlines (PIA).
The discussions between Pakistan and the US EXIM Bank are part of a broader effort to strengthen economic ties between the two countries. Deputy Prime Minister Ishaq Dar has emphasized the goal of doubling bilateral trade with the US to $20 billion over five years. The talks extend beyond loans, aiming to integrate trade, investment, and project financing more closely.
PIA is seeking financing for Boeing 787 Dreamliners and spare parts for grounded Boeing 777s. Finance Minister Muhammad Aurangzeb clarified that the government is not directly purchasing the aircraft, and no sovereign guarantee has been announced. The EXIM Bank could finance the aircraft by assessing PIA or its lessee, potentially avoiding the need for government-backed loans.
Another area of interest is refinery modernisation, though this remains exploratory. The most concrete development is the $1.25 billion US EXIM financing approved for the Reko Diq mining project, which Pakistan views as crucial for future exports. Overall, the collaboration aims to create a pipeline of projects eligible for US financing, connecting Pakistani initiatives with American technology and capital.