ISLAMABAD: The long-awaited signing of the $6.4 billion Reko Diq mining agreement is likely next month, with final arrangements underway for loan facilities from key international financiers including the US and UK EXIM Banks, the World Bank, and the Asian Development Bank, local media reported.
According to The Profit, the financial structure also includes contributions from both the federal and Balochistan governments. According to Dunya news, of the total project cost, Pakistan’s federal government will contribute $3.4 billion, with $1.7 billion of that amount attributable to Balochistan through the Petroleum Division’s allocation.
Production at Reko Diq
Following financial closure, expected shortly after the deal’s signing, global investment inflows of around $3 billion are anticipated. Production at the Reko Diq site is expected to commence roughly three years after financial closure, the Proft reported.
In the first year of production, combined revenues for the federal and provincial governments are projected to reach $3 billion, offering a substantial boost to national and regional fiscal accounts, according to Dunya News.
Located in Balochistan, Reko Diq is one of the world’s largest undeveloped copper and gold deposits. Its revival is being hailed as a pivotal step toward enhancing foreign direct investment and revitalising Pakistan’s mining sector, according to the Profit.
