Islamabad: Pakistan has secured over USD 5 billion in financing commitments from multinational donors for the Reko Diq copper and gold mining project in Balochistan, exceeding the project’s estimated USD 3 billion funding requirement, The Express Tribune reported, citing official sources.
Key commitments have been made by the Asian Development Bank (ADB), Islamic Development Bank (IDB), International Finance Corporation (IFC), and US Exim Bank, with additional offers from development agencies in Germany and Denmark. Officials said the financial close of the project is at an advanced stage, with Petroleum Minister Ali Pervaiz Malik, backed by the Special Investment Facilitation Council (SIFC), leading efforts to expedite its execution.
The US Exim Bank has pledged substantial financing without placing a cap on the amount, which authorities say will help address Pakistan’s funding needs. The Ministry of Petroleum recently organised a webinar with the US Embassy to encourage American investment in the country’s mining sector.
Located in Balochistan’s Chagai district, Reko Diq holds one of the world’s largest untapped copper reserves. The project, revived by Canada’s Barrick Gold, is expected to begin production by 2028. The initial USD 5.5 billion investment is projected to generate USD 74 billion in free cash flow over 37 years, with annual exports estimated at USD 2.8 billion and thousands of jobs expected to be created.
Plans for a future expansion include raising copper production to 400,000 tonnes and gold output to 500,000 ounces per year, with an additional USD 3.5 billion investment. Under an intergovernmental agreement, Pakistan’s federal cabinet has also approved the sale of a 15% stake in the project to Saudi Arabia’s Manara Minerals, involving an expected USD 1 billion investment.
Logistics for the mining operation will be supported by a dedicated railway link developed in partnership with Pakistan Railways, enabling the transport of mining supplies to Karachi and the export of copper concentrate and gold. Officials say Pakistan’s mineral sector is increasingly attracting foreign investment, with potential to significantly contribute to economic growth and industrial development.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
