Islamabad: Parliamentary Secretary for Energy Mian Khan Bugti informed the National Assembly on Thursday that discussions between Pakistan and Saudi Arabia regarding the Reko Diq Copper-Gold Project are currently underway, although Saudi Arabia has not yet made any investment commitment.
Responding to a question from Mirza Ikhtiar Baig during the Question Hour, Mian Khan Bugti said technical teams from both countries are actively engaged in exploring potential investment opportunities. These efforts are based on an updated feasibility study of the project, aiming to finalize terms that could lead to Saudi participation.
In a written reply to Aliya Kamran, the federal government provided details about the project’s timeline and production targets. The first phase of production at Reko Diq is scheduled to begin in 2028, with expected annual output of 300,000 ounces of gold and 200,000 tons of copper. The second phase, planned for 2034, aims to increase output to 500,000 ounces of gold and 400,000 tons of copper annually.
The Reko Diq project is projected to be the largest Western investment in Pakistan, with forecasted free cash flows exceeding US$75 billion over the mine’s current life plan of nearly 37 years. The government emphasized that these projections are based on conservative estimates of real cash flows.
In a related matter, during the same session, the government addressed concerns about petroleum levies. It was revealed that despite reductions in international petroleum prices from March 1 to April 16, no relief was passed on to consumers. The Petroleum Development Levy (PDL) on petrol was increased by Rs18 per liter and by Rs17 per liter on high-speed diesel.
The Ministry of Petroleum stated that the decision to raise the levy was made to generate additional revenue, which the government intends to use in the public interest, citing the opportunity provided by the decline in international oil prices to adjust the maximum PDL rates.
The ongoing talks on the Reko Diq project and recent fiscal measures reflect Pakistan’s efforts to attract foreign investment while managing economic challenges.
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