Pakistan Secures $3.5B Global Financing for Reko Diq Project

Pakistan’s mineral and natural resources sector has achieved a groundbreaking milestone as the country secures $3.5 billion in global financing for the Reko Diq copper and gold project, one of the largest mining ventures in South Asia. The development marks a significant step toward unlocking Pakistan’s vast mineral wealth and enhancing foreign investment under the Special Investment Facilitation Council (SIFC) framework.

According to official sources, the financing deal brings together six major international financial institutions and donor agencies, including the Asian Development Bank (ADB) and the U.S. EXIM Bank, alongside contributions from 11 additional global development partners such as the International Finance Corporation (IFC), International Development Association (IDA), and the European Bank for Reconstruction and Development (EBRD).

Loan Disbursement and Construction Timeline

Sources close to the matter revealed that the loan disbursement process is expected to commence within 45 to 90 days, following the completion of procedural formalities. The construction of key project infrastructure is projected to begin within the next two to four months, signaling the start of full-scale development activities in the Chagai district of Balochistan.

Out of the total $4.2 billion commitment, the largest shares have been allocated to Barrick Gold Corporation, the Government of Balochistan, and major Pakistani state-owned enterprises, including the Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL). These stakeholders will play a pivotal role in ensuring smooth operations and effective project management throughout the mining phases.

37-Year Plan with Massive Economic Potential

The Reko Diq project is structured as a 37-year long-term initiative, designed to be implemented in three major phases. The total estimated output from the project is valued at an impressive $90 billion, reflecting its enormous contribution to Pakistan’s GDP over the next few decades.

• Phase One: 11 key facilities will be established in the Chagai region, with an investment of $16.6 billion.

• Phase Two: 15 additional facilities are planned, requiring $7.7 billion in investment.

• Phase Three: 27 more facilities will be constructed, backed by an investment of $4.8 billion.

Altogether, 53 facilities will be developed across Balochistan, providing a strong foundation for industrial growth, mineral extraction, and regional infrastructure development.

Job Creation and Economic Uplift for Balochistan

The project is expected to create more than 75,000 direct and indirect jobs in Balochistan, offering significant opportunities for local engineers, technicians, and support staff. Beyond employment, the project aims to develop technical training centers, vocational institutions, and infrastructure improvements in the region, contributing to the province’s long-term socio-economic uplift.

Experts estimate that once operational, the Reko Diq mine will generate up to $35 billion in annual foreign exchange earnings, bolstering Pakistan’s reserves and stabilizing its external account balance. The first phase of commercial production is expected to begin in 2028, following the completion of the construction and testing phases between 2025 and 2028.

Global Confidence in Pakistan’s Economic Stability

The successful financing of the Reko Diq project demonstrates renewed global confidence in Pakistan’s economic management and the policy reforms implemented through the Special Investment Facilitation Council (SIFC) — a collaborative platform that brings together civilian and military leadership to attract and secure foreign investment.

Economic analysts note that the involvement of high-profile global institutions like ADB, IFC, and EXIM Bank is a clear indicator of investor trust. These organizations have historically been cautious about sovereign risk, but their participation in Reko Diq reflects Pakistan’s improving creditworthiness and governance under the current framework.

Environmental and Social Commitments

Officials associated with the project have emphasized that environmental sustainability and community welfare will remain central to Reko Diq’s operations. The project will follow international environmental and safety standards, with a commitment to minimizing ecological disruption.

A portion of project revenues will be allocated to local development programs, including healthcare, clean water, and educational facilities in surrounding districts. The Government of Balochistan will also receive substantial royalties and profit shares, ensuring that local communities benefit directly from the region’s natural resources.

A Key Step in Pakistan’s Resource Development Vision

The Reko Diq project has long been recognized as one of the world’s largest undeveloped copper-gold deposits, containing an estimated 6 billion tons of ore. Its development had faced years of delays due to legal disputes and international arbitration; however, recent settlements and government reforms have cleared the way for sustainable progress.

Prime Minister Shehbaz Sharif and the Punjab Chief Minister, Maryam Nawaz, have both lauded the project’s advancement, describing it as a “game-changer for Pakistan’s economy.” Officials from the Finance Ministry have stated that the Reko Diq investment is expected to contribute significantly to foreign direct investment (FDI) inflows over the coming years.

Future Outlook

With the financing now secured and groundwork expected to begin soon, Reko Diq stands as a symbol of Pakistan’s resurgence in global investment markets. The project is poised to transform Balochistan into an industrial hub, generate billions in annual revenue, and reduce Pakistan’s dependence on imported raw materials.