Reko Diq Moves Closer to Execution as Financing Nears Completion, 20% Work Done

The multibillion-dollar Reko Diq copper and gold project has moved closer to execution after the Petroleum Division informed a Senate committee that financing is nearing completion and physical progress has reached 20 percent. Officials briefed the Senate Standing Committee on Petroleum that Phase 1 production remains on schedule for late 2028, with the first phase requiring a total investment of $7.7 billion. They said $2.5 billion has already been secured and that project development is “on track.” The committee was also invited to visit the site for an on-site review. Several senators, however, expressed concern over the absence of any representative from Barrick Gold, the operating partner. They directed that an operational team member must attend future meetings to ensure transparency and regular oversight. According to the briefing, Reko Diq is projected to generate substantial long-term economic gains over its estimated 37-year life. Officials said the mine is expected to deliver $26 billion in benefits to Balochistan, $11 billion to the federal government, and about $15 billion to Pakistani partner companies. Committee members reiterated that Reko Diq remains one of Pakistan’s most strategic mineral projects and stressed the importance of continued monitoring. The meeting grew tense when the Petroleum Division failed to provide basic production numbers for the Sui gas fields. Senators Quratulain Marri and Bilal Ahmed repeatedly requested current output data, but even the DG Petroleum Concessions admitted he did not have the figures, saying he had held the additional charge for only three months. The chair warned that the committee may write to the president and prime minister over what lawmakers described as a breach of privilege. Officials further told the committee that LNG purchases from Qatar and ENI are being reduced because domestic demand has fallen. They noted that RLNG is the most expensive fuel in the system and that monthly imports have already been cut from 10 cargoes. The Petroleum Division briefed lawmakers that Pakistan produces up to 3.2 billion cubic feet of gas per day, with roughly 55 percent coming from Sindh, 30 percent from Khyber Pakhtunkhwa, and only 3 to 4 percent from Punjab. Balochistan supplies around 400 to 500 mmcfd. Senator Bilal Ahmed stressed that under Article 158, Balochistan should receive priority in meeting local needs before gas is diverted elsewhere. The Secretary Petroleum said provincial demand ranges from 90 mmcfd in summer to 210 mmcfd in winter, but added that 80 percent of gas meters in the province are tampered, a claim that alarmed senators. SNGPL management also came under scrutiny after the MD arrived without supply data, promising to present the figures at the next meeting. Lawmakers complained that companies often attend unprepared or skip proceedings entirely. The committee also demanded full details on the Jamshoro Joint Venture Limited arrangement, noting that its original agreement expired in 2020 and has only recently been renewed. Members instructed the ministry to share the company’s Supreme Court submissions and outstanding obligations. The chair directed the Petroleum Division to provide all missing gas production and supply information before the next session, warning that continued withholding of data would result in formal complaints to the highest offices in the country.