ISLAMABAD: In a strong show of international confidence, global financial institutions have pledged over $5 billion for Pakistan’s Reko Diq copper and gold project — exceeding the required $3 billion, and breathing new life into the country’s mining sector.
According to sources, the financing offers come from heavyweight institutions including the Asian Development Bank, Islamic Development Bank, IFC, US Exim Bank, and development agencies from Germany and Denmark.
In a bold move, the US Exim Bank has not set a financing limit, offering open-ended capital support — a signal of confidence in Reko Diq’s profitability and strategic importance.
The drive is being spearheaded by Petroleum Minister Ali Pervaiz Malik, with strong backing from the Special Investment Facilitation Council (SIFC). The ministry has also hosted investment webinars and a minerals conference to attract global stakeholders.
Located in the Chagai district of Balochistan, Reko Diq holds one of the largest untapped copper-gold reserves in the world. The project, now led by Canada’s Barrick Gold, is expected to begin production by 2028 with a total initial investment of $5.5 billion.
The mine is expected to:
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Generate $2.8 billion in annual exports
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Produce 400,000 tonnes of copper and 500,000 ounces of gold annually
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Deliver $74 billion in cash flow over 37 years, according to Barrick CEO Mark Bristow
It will also create thousands of jobs, transform local economies, and open new avenues for foreign direct investment.
In a landmark intergovernmental transaction, the Saudi firm Manara Minerals will acquire a 15% stake in the project, with investment expected to hit $1 billion. The federal cabinet has already approved the agreement, adding another layer of international validation.
Logistics are being streamlined with help from Pakistan Railways, which is constructing a dedicated rail link to Karachi for exporting the extracted minerals.
Currently, Pakistan’s mineral sector contributes just 3.2% to its GDP, yet it holds vast reserves of copper, gold, salt, coal, iron, chromite, and precious stones like emerald, ruby, and topaz. With over 92 identified minerals and 5,000 operational mines, the sector has long remained underutilized.
However, the tide is turning. Increasing foreign interest, favorable policies, and large-scale projects like Reko Diq are reshaping the landscape — turning Pakistan into a potential mineral hub in South Asia.