The recent decision to sell a 15% stake in the Reko Diq project to Saudi Arabia marks a significant milestone for Pakistan’s mining sector and its broader economic landscape. Valued at $540 million, this strategic partnership promises to deliver long-term benefits, creating a win-win situation for both nations.
Under this agreement, Saudi Arabia will acquire the stake in two phases, with an initial 10% for $330 million and the remaining 5% for $210 million. This inflow of foreign investment is a much-needed boost for Pakistan’s economy, which is striving to attract global confidence. The immediate financial impact, particularly the anticipated $330 million in the first phase, will strengthen the country’s economic standing and enable rapid development of this vital resource.
The Reko Diq project is no ordinary venture. It houses one of the world’s largest undeveloped copper-gold reserves, with an estimated 5.9 billion tonnes of ore and 41.5 million ounces of gold. Its development is poised to transform Pakistan’s mining industry and provide substantial economic benefits. With Saudi Arabia’s involvement, the project gains an international spotlight, showcasing Pakistan’s potential as a key player in global mining.
Beyond financial contributions, Saudi Arabia’s commitment extends to supporting mineral resource development in Balochistan through a $150 million pledge. This investment is crucial for the region, which has long faced economic challenges. Moreover, Saudi Arabia’s interest in exploring mineral opportunities in Chagai reflects its trust in Pakistan’s untapped potential.
The partnership also opens doors to significant local benefits. The Reko Diq project is expected to generate employment opportunities, improve infrastructure, and create steady revenue streams for both federal and provincial governments. Balochistan, in particular, stands to gain immensely, as the project’s success will ensure the region’s active participation in Pakistan’s economic growth.
For Saudi Arabia, this investment aligns with its vision of diversifying its economy and strengthening global partnerships. By stepping into Pakistan’s mining sector, Saudi Arabia cements its role as a strategic partner, fostering collaboration beyond traditional energy investments.
This decision symbolizes growing international confidence in Pakistan’s mining sector and highlights the potential of public-private partnerships. The Barrick Gold’s 50% stake and the remaining shares held by federal and provincial governments further ensure that the benefits are equitably distributed.
The Reko Diq partnership with Saudi Arabia is more than a transaction. It is a testament to Pakistan’s ability to attract global investors and unlock its economic potential. This collaboration is a step towards a brighter, more sustainable future for Pakistan and a clear indication that the country is ready to compete on the global stage.
