Islamabad: Japan has expressed keen interest in joining the multibillion-dollar Reko Diq copper and gold mining project, marking a potential expansion of its investments in Pakistan beyond the auto sector.
During a recent meeting of the Economic Coordination Committee (ECC), officials informed the forum that Japanese investors were eager to participate in the project alongside local and international partners. The Finance Division supported the proposal, assuring the ECC that there would be no capital flight in terms of dollar remittances.
The project’s financing structure was also outlined. The Petroleum Division revealed that equity worth $900 million is involved, half of which has been provided by project sponsors, while the remainder comes from agencies. State-owned enterprises (SOEs) are committed to contributing $2.145 billion over seven years through Pakistan Minerals Private Limited (PMPL), either as equity or shareholder loans.
In addition, Balochistan Mineral Resource Limited (BMRL) will meet its shareholder funding commitment of $1.287 billion over the same period. The foreign exchange requirement for these contributions will initially be arranged by Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), with the government stepping in if a shortfall arises.
Officials highlighted that the project’s financing, estimated at $3.5 billion, is being directly managed by lenders and creditors, with a particular focus on health, safety, security, and community welfare.
The ECC acknowledged the significance of the Reko Diq scheme, noting its potential to transform Balochistan’s economic landscape and deliver substantial benefits for Pakistan. The Petroleum Division has sought approval of final terms, definitive agreements, and government guarantees to move the project forward.
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.
