Islamabad: Pakistan has finalised a USD 3.5 billion financing package with six major international financial institutions for the development of the Reko Diq copper-gold project in Balochistan, marking a major milestone for one of the country’s largest mineral ventures.
The financing arrangement includes commitments from the US EXIM Bank, Asian Development Bank (ADB), International Finance Corporation (IFC), International Development Association (IDA), and the European Bank for Reconstruction and Development (EBRD), among others, officials confirmed.
The agreement was signed between the project sponsors, the federal government, and Barrick Gold Corporation. Final board approvals from the lending institutions are still pending, but once granted, the first tranche of funds is expected to be disbursed within 45 to 90 days, subject to the fulfillment of agreed conditions.
Under the terms of the deal, Pakistan will benefit from a grace period of four to five years before repayment begins. The loans will be serviced over a 12-year period at a single-digit interest rate, providing a favourable borrowing structure for the country. Officials said that if all prerequisites are met on schedule, the first disbursement could be released within two months.
Key stakeholders in the Reko Diq project include Barrick Gold, the Balochistan government, Oil and Gas Development Company Limited (OGDCL), and Pakistan Petroleum Limited (PPL). Under the equity structure, Barrick Gold will hold a 55% stake, OGDCL and PPL will jointly hold 27.7%, and the Balochistan government will retain 16.6%.
The total project cost is estimated at USD 7.7 billion, with commercial production expected to begin by the end of 2028. The project is projected to generate total revenues of around USD 53 billion over its lifetime.
Balochistan is expected to receive USD 11 billion in fiscal revenue, including USD 6 billion as its provincial share and USD 9 billion through equity held by Balochistan Mineral Resources Limited. The federal government is also projected to earn around USD 11 billion in fiscal revenues.
Officials described the financing agreement as a key step in turning Reko Diq into a globally significant mining operation that could play a transformative role in Pakistan’s resource economy.
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.
