ISLAMABAD: In a major step forward for Pakistan’s economy, a multi-billion dollar financing agreement has been finalized for the development of the massive Reko Diq copper and gold mining project in Balochistan. The project is now moving firmly into its next phase, with funding secured from a consortium of major international financial institutions .
The $3.5 billion financing package was signed by the federal government and Barrick Gold Corporation, the project’s operator. The lending group includes prominent institutions such as the US EXIM Bank, the Asian Development Bank (ADB), and the European Bank . The disbursement of funds is expected to begin within 45 to 90 days, pending final approvals from the lenders’ boards .
The loan comes with favorable terms for Pakistan, featuring a grace period of four to five years and a repayment schedule spread over 12 years, with an interest rate in the single digits .
The Reko Diq project is one of the world’s largest undeveloped copper-gold deposits . The total cost of the project is estimated at approximately $7.7 billion . The ownership is split between Barrick Gold (50%) and a consortium of Pakistani stakeholders, including the Balochistan government and federal state-owned enterprises, which together hold the other 50% .
This project is expected to be a cornerstone of Pakistan’s economic development for decades. With an estimated life of at least 37 years, it is projected to generate substantial revenue . Official estimates suggest the project could bring Pakistan a total of $53 billion in revenue over its lifetime .
Also read: Reko Diq project cost jumps to $7.7b
The financial benefits will be shared across different levels of government. Balochistan, the province where the mine is located, is projected to receive $11 billion in fiscal revenue, plus an additional $6 billion as its provincial share and $9 billion through its equity stake . The federal government is also expected to earn around $11 billion in fiscal revenues .
