Pakistan Secures $3.5 Billion Financing for Reko Diq Project with Global Backing

Pakistan’s mineral sector has reached a significant milestone with a $3.5 billion financing agreement secured for the Reko Diq project, sources told ProPakistani. The deal, facilitated by the Special Investment Facilitation Council (SIFC), brings together six major global donor agencies, including the U.S. EXIM Bank and the Asian Development Bank (ADB). It also features participation from 11 international financial institutions and development partners, such as the International Finance Corporation (IFC), the International Development Association (IDA), and the European Bank for Reconstruction and Development (EBRD). According to sources, the loan disbursement process is expected to begin within 45 to 90 days. Construction of basic infrastructure is slated to commence in the next two to four months. Out of the total $4.2 billion project commitment, the largest shares are allocated to Barrick Gold, the Government of Balochistan, and state-owned enterprises such as Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL). The ambitious project is planned to span 37 years, with an estimated output valued at $90 billion. Under the plan, 53 facilities will be established across Balochistan, 11 in the first phase, 15 in the second, and 27 in the third. The first phase, focused on Chagai district, will see an investment of $16.6 billion, followed by $7.7 billion in the second phase and $4.8 billion in the third. The project is expected to create 75,000 jobs in Balochistan and generate up to $35 billion in annual foreign exchange earnings upon completion. The full project is scheduled for completion between 2025 and 2028, with production expected to begin in 2028.