As Barrick Gold (a major stakeholder in the Reko Diq mine) suggests, exploring the “world’s largest underdeveloped copper-gold areas” would go a long way in reshaping Pakistan’s economic landscape. With an estimated $74 billion in free cash flow projected over the next three decades, the potential benefits of this joint venture are undeniable. Yet, as we anticipate the commencement of production, haunted by repeated delays, there appears a pressing need to address the challenges that lay ahead.
First and foremost, it is crucial to recognise what the Reko Diq project represents: a beacon of hope for an economy grappling with dwindling foreign reserves. However, the narrative must extend beyond just potential profits. The province of Balochistan, rich in natural resources but historically deprived of equitable benefits, stands at the centre of this deal. If the economic windfall from Reko Diq is to serve as a genuine catalyst for development, a well-defined strategy is required to include substantial sweeteners that ensure the local population can partake in the benefits derived from their land, with commitments to prioritise their employment, infrastructure enhancements, and community investments.
The scepticism surrounding foreign investments in Pakistan often stems from a legacy of exploitation, where local communities often see little benefit from resource extraction. Already, news reports of Saudi Arabia’s mining fund planning to acquire a significant stake (between 10 and 20 percent) add a layer of complexity. While this foreign interest may bolster investor confidence and safeguard against abrupt policy shifts, it risks diluting the benefits for Islamabad and necessitates robust frameworks to protect the rights of local communities, ensuring they receive their fair share of this wealth.
The long-running dispute that previously delayed the project further serves as a stark reminder about the importance of political stability. Without a conducive environment that fosters trust and cooperation among all stakeholders, the full potential of Reko Diq may remain unfulfilled. The onus now lies on our shoulders. Surely, no one else can rise to the occasion and embrace this golden opportunity as a cornerstone of change that actually matters. *