A Boost for Balochistan and country’s economy Saudi Arabia is poised to make a significant investment of $1 billion in the Reko Diq copper and gold mine project. This investment holds the potential to bolster economic development in the region and elevate Pakistan’s status as a key player in the global mining industry.

Situated in the Chagai district, the Reko Diq mine hosts immense untapped reserves of copper and gold, making it one of the largest undeveloped deposits of these valuable resources globally. The project, which is a joint venture with 50 percent ownership held by Barrick Gold Corporation, stands to yield substantial quantities of copper and gold for decades to come, promising economic growth and prosperity for the region. The ownership structure of the Reko Diq project involves Canada based Barrick Gold Corporation owning 50 percent, with 25 percent held by three federal state owned enterprises, 15 percent allocated to Balochistan on a fully funded basis, and the remaining 10 percent designated to Balochistan on a free carried basis, as detailed by Barrick.

The potential investment from Saudi Arabia is a testament to the growing interest and confidence in Pakistan’s mining sector. The reported $1 billion injection into the Reko Diq project signifies the willingness of international investors to contribute to the development of Pakistan’s natural resource industry, marking a significant step towards economic revitalization in the country. The establishment of the Special Investment Facilitation Council (SIFC) by Pakistan, which includes key figures such as the army chief, underscores the government’s commitment to facilitating investments and promoting economic growth.

The formation of the SIFC last year aimed to address economic challenges, including low foreign exchange reserves, currency devaluation, and high inflation rates, through strategic partnerships and investments. With proactive efforts to attract foreign investments, Pakistan has engaged in bilateral agreements with countries in the Middle East, including Saudi Arabia, to strengthen economic ties and foster development opportunities. The impending Saudi investment in the Reko Diq project aligns with these collaborative initiatives and is expected to pave the way for further cooperation in the mining sector between Pakistan and Saudi Arabia. As part of the investment process, Prime Minister Shehbaz Sharif is set to establish a committee comprising officials from the finance ministry and relevant stakeholders to ensure the seamless implementation of the Saudi investment.

This coordinated approach reflects the government’s commitment to fostering a conducive environment for foreign investments and promoting sustainable economic growth in Pakistan. The anticipated agreements between Pakistan and Saudi Arabia following the investment in the mining sector signify a broader partnership between the two nations in harnessing the potential of natural resources to drive economic advancement. By leveraging this opportunity, Pakistan can accelerate its mining industry, create job opportunities, and stimulate economic growth, while Saudi Arabia can strengthen its position as a strategic partner in the region.