ISLAMABAD: Pakistan’s multibillion-dollar Reko Diq copper and gold project has entered a new phase of partnership after the Special Investment Facilitation Council (SIFC) removed key financing and investment hurdles.
State-owned Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited will back the project with joint corporate guarantees. OGDCL has already approved $715 million in funding for the first phase, while Reko Diq Mining Company will extend a $350 million loan to build a new railway line.
Under the ML-3 project, authorities plan to connect Reko Diq to Port Qasim via railway within three years, improving logistics for one of the largest mining ventures in Pakistan’s history.
The project is expected to generate $90 billion in revenue over its lifetime, creating thousands of jobs and business opportunities in Balochistan’s mineral-rich Chagai district. Officials said the development will not only transform the local economy but also strengthen Pakistan’s foreign reserves and industrial base.
Last month, Reko Diq secured $6 billion in funding from the United States, Japan and leading global financial institutions, while the Asian Development Bank (ADB) and the World Bank approved an additional $1.05 billion. Officials hailed the deal—brokered by SIFC—as Pakistan’s largest-ever foreign investment and a milestone for its mining sector.
Experts say the project will help ease the global copper supply shortage, attract fresh investment, and accelerate Pakistan’s economic recovery. Backed by Canada’s Barrick Gold, the federal government and Balochistan’s provincial authorities, production is scheduled to begin in 2028.
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Reko Diq, located near the borders of Iran and Afghanistan, is regarded as one of the world’s largest untapped copper-gold deposits. Officials and investors alike describe it as a potential game-changer for Pakistan’s economy.
