Japan Considers Major Investment in Pakistan’s Reko Diq Project

Japan has shown strong interest in making a significant investment in Pakistan’s Reko Diq copper and gold mining project, a move that could diversify its investment presence in the country beyond the automobile sector. The development signals new opportunities for Pakistan’s mining industry, with international stakeholders now showing unprecedented confidence in the project.

The matter came under discussion during a recent meeting of the Economic Coordination Committee (ECC) of the cabinet, where officials confirmed that Japan is keen to participate alongside local and international investors. The Finance Division backed the proposal, assuring that such involvement would not cause capital flight through heavy dollar remittances.

Reko Diq, located in Chagai district of Balochistan, is one of the world’s largest undeveloped copper and gold reserves. Estimated to hold billions of tonnes of copper ore and significant gold deposits, it is regarded as a project with the potential to reshape Pakistan’s economic future.

Earlier this year, Saudi Arabia expressed its willingness to inject capital, including acquiring up to a 15% stake in the venture. Now, Japan’s growing interest has further elevated the project’s global profile.

Officials briefed the ECC that sovereign guarantees from the Government of Pakistan and additional financial support from the Asian Development Bank (ADB) have already been included in the framework to protect investor confidence and ensure Balochistan Mineral Resource Limited (BMRL) maintains strong backing.

The Petroleum Division outlined that the project’s equity is valued at $900 million, split equally between sponsors and partner agencies.

Additionally, state-owned enterprises are committed to repatriating around $2.1 billion over seven years through Pakistan Minerals Private Limited (PMPL), either in the form of equity or shareholder loans.

The provincial government of Balochistan, represented through BMRL, will remain a crucial partner in the project. The Petroleum Division has requested final approval for agreements allowing BMRL to repatriate $1.3 billion over seven years to fulfill its equity obligations.

To manage foreign exchange requirements, Pakistan Petroleum Limited (PPL) and the Oil and Gas Development Company Limited (OGDCL) will initially provide resources from their own reserves. The federal government has pledged to step in if any financial gaps arise.

During discussions, ECC members underlined the strategic importance of the Reko Diq project for Pakistan’s long-term economic goals. Officials noted that the project is not just about mineral extraction but about reshaping the economic landscape of Balochistan.

Expected benefits include:

• Billions in national revenue.

• Thousands of direct and indirect jobs.

• Infrastructure growth in underdeveloped areas.

• Long-term foreign direct investment (FDI).

An ECC official stated: “Reko Diq can become a cornerstone of Pakistan’s economic progress. If managed effectively, it has the capacity to attract global recognition and transform Balochistan into a mining hub.”

If Japan proceeds with investment, it would join Saudi Arabia and other global partners, creating a strong alignment of international economic powers in a single project. Analysts believe such partnerships will significantly boost Pakistan’s geopolitical and economic leverage.

With ADB’s involvement, the project also carries credibility in terms of governance, compliance, and environmental safeguards — factors that are essential for long-term investor confidence.

Japan’s potential investment in the Reko Diq copper and gold mining project reflects growing global confidence in Pakistan’s natural resources. Alongside Saudi Arabia’s earlier plans to invest, it strengthens the project’s strategic value and highlights its potential to reshape both Balochistan’s economy and Pakistan’s national revenue base.